Boat Owners can take advantage of Tax Deductions

Boat Owners who paid state sales taxes on a boat purchase, or secured a loan, may be able to take some tax deductions.  The Tax Extenders Act of 2008 continues to offer a federal tax deduction or state income tax deduction.  Boaters must choose either the State Or Federal tax deduction --you can not take both. Talk to your tax advisor about this deduction.

Boat Owners who paid interest on a secured loan may be able to deduct the interest from their Federal Tax.  Taxpayers may use the home mortgage interest deduction for one second home in addition to their primary home, and must itemize deductions on their returns.  A boat is considered a second home for federal tax purposes if it has a galley, an installed head and sleeping berth.  Boaters should contact their lender if they do not receive a 1098 from them.  Talk to your tax advisor about this tax deduction.