Cruisers & Sailing Forums (http://www.cruisersforum.com/forums/)
-   Multihull Sailboats (http://www.cruisersforum.com/forums/f48/)
-   -   Boat ing Fun as a Business (http://www.cruisersforum.com/forums/f48/boat-ing-fun-as-a-business-97639.html)

Brogan007 07-02-2013 13:53

Boat ing Fun as a Business
 
I changed the heading, to save any "copyright" b.s. but most of you will know what I'm referring to.
Has anyone really looked into the legality of this concept and had a positive outcome? My CPA says run, don't walk to the door.
Like everything in life, it seems way to good to be true.
Buy a boat, get massive year one 500k tax deduction, sail off into sunset.
The part about the IRS man waiting on the dock seems missing.
Any thoughts?

delmarrey 07-02-2013 14:08

Re: Boat ing Fun as a Business
 
It's along story that could take pages, but I just say it's not profitable. A hole (hull) in which you pour money.

Licenses/Certs
insurance
local
permits
++++

David M 07-02-2013 14:09

Re: Boat ing Fun as a Business
 
I don't know what specifically you are referring to...sorry. :)

The IRS has definitions that determine a hobby from a business. What it sounds like you are considering would never fit the IRS's definition of a business. My wife is an IRS enrolled agent who knows this stuff.

MarkSF 07-02-2013 14:27

Re: Boat ing Fun as a Business
 
Sorry, my psychic powers are not at their best this afternoon, could you explain what you are talking about?

MarkJ 07-02-2013 14:34

Re: Boat ing Fun as a Business
 
I just did an image search on "boating Fun" :eek: nothing like that ever happens on my boat :rolleyes:

David_Old_Jersey 07-02-2013 15:19

Re: Boat ing Fun as a Business
 
Quote:

Originally Posted by MarkSF (Post 1150665)
Sorry, my psychic powers are not at their best this afternoon, could you explain what you are talking about?

+1 :confused::confused::confused:

MarkSF 07-02-2013 15:22

Re: Boat ing Fun as a Business
 
Quote:

Originally Posted by David_Old_Jersey (Post 1150709)
+1 :confused::confused::confused:

But my best guess is that the OP is suggesting falsely claiming his boat is a business, defrauding the US tax authorities, and then sailing away before he can be caught.

BTW, as a business I believe you can only claim DEPRECIATION of your assets. So your boat is depreciating by 500K in the first year. What is it, an oil tanker?

delmarrey 07-02-2013 15:23

Re: Boat ing Fun as a Business
 
I think what he's trying to say is; buy the boat under a business name and take off. If so, it wouldn't work once the IRS finds he doesn't have all the items I listed.

David_Old_Jersey 07-02-2013 17:10

Re: Boat ing Fun as a Business
 
Quote:

Originally Posted by MarkSF (Post 1150715)
But my best guess is that the OP is suggesting falsely claiming his boat is a business, defrauding the US tax authorities, and then sailing away before he can be caught.

BTW, as a business I believe you can only claim DEPRECIATION of your assets. So your boat is depreciating by 500K in the first year. What is it, an oil tanker?

ok.

I have no idea how the US tax system works (and please, don't educate me!) - but wouldn't it be simpler (and more profitable?) to run off without paying yer tax bill. and never coming back!

dgasmd 07-02-2013 17:24

Re: Boat ing Fun as a Business
 
If I read this correctly, he is probably thinking of using the $500K boat he was planning to buy anyway as a business and using its expenses, ownership and all, as a business deduction so long as he described it as such. Then, using it himself too. It can be done, but you have to dot your i and cross your t so well it is beyond most people. Yes, the IRS have definitions that differentiate business from personal use, but I can tell you you could go either way on the definition depending on who is reading it and applying it. The trick is to have all the proof there is to back up your claims. Also, as a business, you are only allowed 3 years of losses within a 5 year period, so at some point you will have to have an income/profit to make it work.

I am not advocating or encouraging anyone to do this, just so we are clear. I am also not trained formally in any way or shape in the laws r IRS rules. What I have said above is something anyone can easily find in just about any publication teaching you how to lower your tax exposure.

dochueb 07-02-2013 22:13

I believe he's referring to these or similar programs.


http://www.bayacht.com/invest.htm

http://www.floridayacht.com/sales/boatasbusiness.php


Just a hunch.

Disclaimer: I am familiar with, but not associated / affiliated with these or any other similar program.

Brogan007 08-02-2013 18:34

Re: Boat ing Fun as a Business
 
Thank you. I was expecting the forum knew all about this "option"...and wanted to hear opinions. I already formed mine.
I dont want, dont need, and dont intend to do anything that might incur the wrath of the IRS.




Quote:

Originally Posted by dochueb (Post 1151089)
I believe he's referring to these or similar programs.


Bay Yacht Agency Page Bay Yacht Agency Group. We offer new and brokerage boats. Power and sail. Monohulls and catamarans. We also offer a unique Boat-As-A-Business plan.

Florida Yacht Charters & Sales: Boat as a Business Ownership Plans


Just a hunch.

Disclaimer: I am familiar with, but not associated / affiliated with these or any other similar program.


Redreuben 08-02-2013 22:10

Re: Boat ing Fun as a Business
 
Love all the disclaimers !
So much for freedom of speech if you're all too scared of a writ ! Far out !
pmsl

This is the opinion of the writer, come get me !

Doodles 08-02-2013 22:47

Re: Boat ing Fun as a Business
 
Quote:

Originally Posted by Brogan007 (Post 1150636)
I changed the heading, to save any "copyright" b.s. but most of you will know what I'm referring to.
Has anyone really looked into the legality of this concept and had a positive outcome? My CPA says run, don't walk to the door.
Like everything in life, it seems way to good to be true.
Buy a boat, get massive year one 500k tax deduction, sail off into sunset.
The part about the IRS man waiting on the dock seems missing.
Any thoughts?

As a retired CPA, I can tell you it is doable but there are a lot of boxes to check and hoops to jump through, and most boat owners would never be able to qualify. So, listen to your CPA and head for the door ASAP.:thumb:

dochueb 08-02-2013 23:07

Quote:

Originally Posted by Redreuben (Post 1151975)
Love all the disclaimers !
So much for freedom of speech if you're all too scared of a writ ! Far out !
pmsl

This is the opinion of the writer, come get me !

Sorry about your continence issues.

My disclaimer was not made out of fear. My point was that I am not an agent of either of these companies and was not vouching for their legitimacy. Just clarifying what the OP was referencing for those who weren't aware.

Dave


All times are GMT -7. The time now is 03:54.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.


ShowCase vBulletin Plugins by Drive Thru Online, Inc.