Discussion:Business use of second-home boat
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Business use of second-home boat
| April 21, 2008 | |
| Client (individual) has a boat which has been used as a second home for past several years.
In 2008 client will begin using the boat a portion of the time in a trade or business provided private crewed charter. However, client will continue to use the boat as a second home when not being used by the new business. The situation seems similar to a person renting out their land-based second home as a rental for a portion of the time. Would it be correct to handle the new business activity as a rental activity on Sch E? Alternately, would it be correct to 'separate' the property into a personal second home portion and a trade or business portion using a reasonable allocation ratio (perhaps based on annual engine hours), and report the new business on Sch C? In other words, is it possible to convert only a portion of the second home to business use? Possiblity C: once any business use begins, the entire boat is converted to business use. Thanks for any advice. | |
| April 21, 2008 | |
| I think by definition, it can't be used as a business item. You can deduct the day's expenses, and that's it. | |
RoyDaleOne (talk|edits) said: | 21 April 2008 |
| I wonder short term rentals with services provided, Schedule C? | |
