Originally Posted by Maka
Regarding using a corporation to own a boat and or slip to save taxes
: If it is a Sub S or similar corporation that lets you deduct the corporate expenses from your personal taxes
whether the corporation generates income
Granted that a Sub S corporation must show some income
with in 5 years, but this is an easy one. Rent the boat for an evening to a friend to have a little party on the boat w out ever leaving the slip. To some one for a photo
shoot, who never goes on board. Be creative. Just be honest in the process.
Your accountant can define the parameters for you.
The advantage of having the Corporation own the slip as well, is that the new owner of the corporation does not have to get on a waiting list for a slip in a crowded and popular marina or harbor. This is a common practice for commercial
boat operations as well as private boat owners.
You can more or less guarantee an audit for yourself if you attempt to show nothing but losses for 5 years. By income I think you mean it needs to show a net income, which will not happen by renting
the boat for a couple of days a year.
Also - how are you funding
this black hole corporation? Personal loans each year?
This could end up being classified as evasion, for which you can be tossed in jail.
Once again though - nothing to to with USCG hailing port, and now also nothing to do with use/sales tax, which I presume you would write off in your shell company, only saving the personal income tax on it
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