Is my new 2006 Bass Boat tax deductible? What about the interest?

Answer 1

If the boat is used in a business such as fishing or excursions then the boat and interest and related expenses would be deductible.
If it is a pleasure boat then no the boat is not deductible. If you are paying interest for a personal loan used to buy the boat then te interest would not be deductible. If you used a home equity loan to buy the boat then the interest on no more than $100,000 of such a loan would be deductible. If the boat has sleeping quarters and a head it could qualify as a second residence and this would make the interest deductible.
Good Luck!

Answer 2

Not unless you are in the business of Bass Fishing. However, you are able to add the sales tax of large purchases (like a boat) to the talbe amount for sales tax deduction on Schedule A...with requirements: 1) provided you have enough itemized deductions to add up to more than the standard deduction for your filing status. and 2) the sales tax total would have to be larger than any other state income taxes you paid in 2006.

Just tell the tax preparer what you paid in sales tax on the boat. The tax preparer should know what to do.

Answer 3

property taxes, YES.

Here's an interesting thing though - does it have a bathroom (I don't know boats)? If yes, you might claim it as a 2nd home and then you can deduct the mortgage interest. No bathroom, no interest deduction.

Ask a tax pro (not H&R Block)

Answer 4

only interest and property taxes on personal property are tax-deductible on schedule a.