Guv'ment Money!

[drew.ward]

So I've been researching what money if any is available to assist in buying a boat. I don't own a home (nor do I want to) so this would be my residence.

I just found out that Mr. Obama wants to give me $8,000 to buy a boat if I can find one this year.

The details are that if you make 75K per year or less and have not bought a home in the last 3 years you can get a First Time Home buyer tax credit for 10% of the purchase cost of a home up to $80,000 (if your income is above 75k it's prorated).

It's a refundable tax credit which means that you get the money back as a payment when you file your federal taxes (they deduct the credit from what you owe -- if anything, and send you a check for the rest).

AND...liveaboard boats are listed as an eligible home purchase!

Now granted I'm not looking for an 80K boat, but it's nice to know that I can get 10% of my purchase price back next year even if it's only $2-3000.

So I am curious, does anyone know of any other money that is available to help in a boat purchase?

[Badsanta]

I think there is an alternative energy credit. So you may get something for some new solar panels. But I dont know the details. good luck.

[Randy]

Check into the details with an accountant. As I recall, it's not exactly free money. Kind of a gimmick that allows people to come up with some downpayment and there's something about paying it back but I can't remember the details.

[GordMay]

Originally Posted by Randy

Check into the details with an accountant. As I recall, it's not exactly free money. Kind of a gimmick that allows people to come up with some downpayment and there's something about paying it back but I can't remember the details.

The most significant difference from the tax credit that Congress enacted in July of 2008 and this new one, is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit.

However, home buyers must use the residence as a principal residence for at least three years* or face recapture of the tax credit amount.

* If the home is sold within 3 years of purchase, the entire amount of credit is recaptured on sale.

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (mobile homes) and “houseboats”. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

You must complete your new purchase (or close and record) before December 1, 2009.