www.iFourWinns.com

I recently read an article about boat interest being deductible as a second home. Briefly, the article said you must have a sleeping area, head, sink, and cooking area to qualify. Boats as small as 20 feet may qualify. The IRS is so busy with other stuff (and now have to worry about your medical insurance qualifications), and this particular issue is low on the radar screen, so an audit is unlikely.

So, here's my boat: 23 foot Four Winns F224. It has a semi-permanent pole mount grill attachment, sink with potable water, porta-potty in an enclosed head area, and a full camper canvas enclosure.

Does it qualify? Anyone know?

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2008 Four Winns F224
5.0 Volvo Penta
Towing with Audi Q7 4.2 V8

I don't know the answer, but since the IRS is in the process of hiring 16,000 additional agents as a result of health care I wouldn't assume this will drop off their radar.

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Mike
2005 Four Winns 230/240
VP 5.7GXi/DP
1998 F-150 XLT
Boat Pic

Yes, the sink and the potty are the "qualifiers"

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Current Boat:
2004 Sea Ray 320 Sundancer "Nauti Luvin'"

Previous Boats:
1999 298 Vista "Seas The Day"
2008 H200SS "Nauti Luv"
2006 Tahoe Q4

If you get audited, your boat will not qualify.

I asked my accountant about the H240 because I had a grill -- and he advised seriously against it.

I wouldn't risk it.

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2008 318 Vista -SOLD, but I am still around!
All Night Long, Seattle WA

Not even close.

The IRS defines a "second residence" as one with sleeping quarters, cooking facilities, and a toilet with running water. If your boat qualifies as a second residence, interest on the boat loan may be deductible.
In order to deduct interest, the loan must be secured by the boat. The IRS will expect you to use the boat as a residence for at least 15 nights during the year. Documentation is required. Also recognize that a boat sitting on your trailer in the driveway with a camper top, an air mattress on the deck, and a grill on board will not meet the residence test.

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One of 4 Previous (Sold) Boats:
2000 Four Winns 268 Vista

Current Boat: 2004 Chaparral 235 ssi cuddy

It does not qualify...I would not risk the small reward you might get.

INtereating comments. I am sure the 15 day rule only applies if you rent it out. Also I keep the boat in the water not on a trailer. The boat is the security for the loan. It's gray area I know. The savings is about $1k per year. Not a lot but not insignificant either.

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2008 Four Winns F224
5.0 Volvo Penta
Towing with Audi Q7 4.2 V8

Our opinions mean nothing, it is the auditors opinion that counts.

I like the question and the thought that has gone into this--but I'm not sure I would risk it.

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Norris Lake, Stardust Marina, Andersonville, TN
2005 Four Winns 230 Horizon 5.7L Volvo Gi/DP
2001 Maxum 1900SR 5.0L V8 (Sold)
2011 Nissan Armada Platnum

I used my 35' 5th wheel RV for our 2nd home. A small cuddy is very questionable, now the vistas I would think they are equipped such that they would qualify.

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2000 248 5.7L DP
'92, '94 SXI 750, '08 STX 15F, '12 Ultra LX 300
Videos

"Take it from me. You can write it off. What the hell, double the write-off. You are entitled to it."

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Current Boat: 2000 Four Winns 298 Vista
Previous Boat: 2000 Carver 406MY

My 268 Vista, yes. When I had my 225 Sundowner no, and that had a dedicated sleeping compartment unlike your Funship. I wouldn't risk it for the minimal savings.

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2007 358 T-5.7GXi IB
Previous Boats
'08 H240, '08 V318, '04 268, '04 225

haha I knew I could trust this group!

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2008 Four Winns F224
5.0 Volvo Penta
Towing with Audi Q7 4.2 V8

The code is subject to interpretation. Despite some misinformation out there, the question is, is there any caselaw precedent that has ruled on these issues? I've researched it and haven't found any. My suscipion is that any audit dealing with this issue involves such a small penalty due to the amount someone would be claiming on a non-qualifying boat (ie a small cuddy) that the fight never gets to court. I suspect youre right that this alOne would not likely trigger an audit but if it did happen you are at the mercy of the auditor and the cost to fight and likelihood of a loss will result in you settling. So, you have to ask yourself, is it worth the risk? Might be. But I'd evaluate that risk in terms of whether I can accept the penalty that goes with the audit and not on the basis that I'd win the audit because it likely won't be cost effective. If it were me, I would not take it with your boat even though I'm low risk for audits to begin with. I know my current boat qualifies and it's a decent rebate. Remember that there is I believe a 7 year statute of limitations and if they nail you in year 7 those back taxes could really add up.

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Former owner of:
1996 Four Winns Horizon 200 5.8L VP
2006 Four Winns Horizon 260 8.1L VP
2007 Sea Ray 290 Sundancer

Current boat
2004 Sea Ray 290 Sun Sport Twin 350 Mags

Great point, Cincy! Maybe I'll just have to get a bigger boat.

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2008 Four Winns F224
5.0 Volvo Penta
Towing with Audi Q7 4.2 V8