Boat Owners May Have Federal Tax Deductions Available

Boat Owners May Have Federal Tax Deductions Available
Boat Owners May Have Federal Tax Deductions Available
Boat Owners May Have Federal Tax Deductions Available

From Boat US

ALEXANDRIA, Va. -- Recreational boat owners who paid state sales taxes on a boat purchase, or those who secured a loan to finance a boat, may have some tax deductions coming to them when filing their 2010 federal income tax return, says a national boat owners group, BoatUS.

The Sales Tax Deduction
For boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 continues to offer a federal tax deduction for state sales taxes. Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return — you cannot take both.

In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state’s general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A line 5b.


The Boat Loan Deduction
For those owners with a secured boat loan, mortgage interest paid on the loan may be deducted from your federal income taxes. 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.


Some boaters may be unaware of this potential tax benefit because not all lending institutions send borrowers an Internal Revenue Service form 1098 which reports the interest paid. Not receiving the form does not preclude taking the deduction. If a 1098 is not available, boaters should contact their lender for the amount of interest paid and should enter it on line 11 on Schedule A along with the lender’s tax ID number. If a form 1098 is sent, boaters should simply enter the amount on line 10 of Schedule A.

Sorry, AMT
For those who fall under the Alternative Minimum Tax, most deductions are unavailable. Boaters are urged to contact a tax preparer or financial advisor for more information.

For more details on the mortgage deduction on boats that qualify, go to www.IRS.gov and download Publication 936 or the Fact Sheets. For state tax deduction information download Publication 600 which also includes state-by-state tax tables.

About BoatUS:
BoatUS – Boat Owners Association of The United States – is the nation’s leading advocate for recreational boaters providing over half a million members with government representation, programs and money saving-services. For membership information visit www.BoatUS.com or call 800-395-2628.


GET THE NEWSLETTER Join the List and Never Miss a Thing.

Recommended Articles

See More Recommendations

Popular Videos

Veto Pebble Mine Campaign

Veto Pebble Mine Campaign

Veto Pebble Mine Campaign

Daiwa Dark Water Rods

Daiwa Dark Water Rods

From barracuda to wahoo to kingfish to sailfish and beyond, these new Daiwa saltwater rods rely on HVG technology (that makes them 50% lighter), soft tips to protect leaders as big fish make strong runs, and strong backbones to help anglers crank up hard-fighting species from below.

Costa Ferg Sunglasses

Costa Ferg Sunglasses

Costa's Todd Barker reveals the features of the new Costa Ferg sunglasses, a best-of-category winner at ICAST 2020.

MLF Pros: What

MLF Pros: What's Your Go-To Lure?

When all else fails, here's what these pros tie on.

See More Popular Videos

Trending Articles

If you haven't looked at the smaller urban lakes in your area, you are missing out on some great bass pond fishing. Bass

Bass Pond Fishing: Catch Lunkers at Small Lakes Near You

Dan Anderson

If you haven't looked at the smaller urban lakes in your area, you are missing out on some...

The best jig fisherman are those that are always aware of what their jig is doing. Bass

4 Tips When Jig Fishing For Bass

Chris Schneider - August 25, 2015

The best jig fisherman are those that are always aware of what their jig is doing.

Want to test the outer limits of your shooting skill? There's more to successful long-range Ammo

10 Best Long-Range Cartridges Ever Made

David Hart - January 14, 2015

Want to test the outer limits of your shooting skill? There's more to successful long-range

As most catfish anglers know, blue cats, channel cats and flatheads will eat darn near anything that fits in their mouths. Catfish

5 Ways To Catch Catfish on Lures

Keith Sutton

As most catfish anglers know, blue cats, channel cats and flatheads will eat darn near...

See More Trending Articles

More Stories

As the official zone maps of Pool 8 were handed out for the Championship Round of the 2016 Summit Cup on the Mississippi River, the six finalists scoured the maps like scratch-off lottery tickets, hoping their numbers would come up big. Stories

Past Experience Squashed by Fishing Zone Boundaries for Championship

Rob Newell, MajorLeagueFishing.com

As the official zone maps of Pool 8 were handed out for the Championship Round of the 2016...

All sides must have something to offer to make it work. Stories

Fishing Buddies: It Has to Be Give-and-Take

Jeff Johnston - June 18, 2020

All sides must have something to offer to make it work.

Pan-friend slabs may not sound like a holiday meal, but as a celebration of Mom's life it was my most memorable Christmas dinner ever. Stories

Crappie for Christmas: The Fondest of Childhood Memories

Keith Sutton - December 19, 2018

Pan-friend slabs may not sound like a holiday meal, but as a celebration of Mom's life it was...

A father-son fishing outing for bass culminated into a catch that tied a state record for yellow perch in Tennessee. Stories

Father-Son Outing Results in Tied State Record

Game & Fish Online Staff - August 08, 2018

A father-son fishing outing for bass culminated into a catch that tied a state record for...

See More Stories

GET THE MAGAZINE Subscribe & Save

Digital Now Included!

SUBSCRIBE NOW

Give a Gift   |   Subscriber Services

PREVIEW THIS MONTH'S ISSUE

GET THE NEWSLETTER Join the List and Never Miss a Thing.

Get Digital Access.

All Game & Fish subscribers now have digital access to their magazine content. This means you have the option to read your magazine on most popular phones and tablets.

To get started, click the link below to visit mymagnow.com and learn how to access your digital magazine.

Get Digital Access

Not a Subscriber?
Subscribe Now