Discussion:Writer using house boat deductible?
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Discussion Forum Index --> Basic Tax Questions --> Writer using house boat deductible?
Discussion Forum Index --> Tax Questions --> Writer using house boat deductible?
| 3 July 2009 | |
| If a writer uses a houseboat both for personal use and for writing books how would you determine how much of the expense of the houseboat would be deductible? The publisher is offered opportunities to stay on the houseboat and conferences will be held at the houseboat. I am thinking the writer would have to keep very good records showing percentages of personal and business use. | |
| July 3, 2009 | |
| Well, boats are not deductible for biz purposes at all, along with country club dues, hunting cabins, and the like. Only the daily expenses are...so it just got a lot simpler didn't it? (He could claim interest if it's a second home, of course.) | |
| 3 July 2009 | |
| It is a well known fact that Ernest Hemmingway (Old Man and the Sea) blew his brains out becuase the IRS wouldn't let him deduct his boat. Don't let this happen to your client. | |
| 3 July 2009 | |
| Isn't it possible it is his PRIMARY residence? Then I could see no reason he could not claim a home office, as long as the other home office qualifications are present. | |
| 3 July 2009 | |
| it would be hard to pass the exclusive test on anything small | |
| 3 July 2009 | |
| I don't think there is a problem with a houseboat per se as long as the first requirement, exclusive and regular business use, is met (see Sec. 280A(c)(1) and Prop. Reg. 1.280A-2(b)). I agree with Kevin that proving it might be the challenge when considering such a small space. Yet, I had to agree with the client who swore that he used the desk in his living room only for business; and, therefore, insisted that the business use percentage be based on the square footage occupied by the desk. -- Larry Hess, CPA | Albuquerque, NM | |
| 4 July 2009 | |
| Per Proposed Reg. 1.280A-2(g):
"For purposes of section 280A(c)(1) and this section, the phrase “a portion of the dwelling unit” refers to a room or other separately identifiable space; it is not necessary that the portion be marked off by a permanent partition." | |
| 4 July 2009 | |
| Is he willing to go down with his ship? If he qualifies as a real Captain, then yes, it's deductible. So, he should be prepared to show his outfit with cap, and any classes and licenses (harbor master, waterway wrangler 2nd Class, etc.) that he has attained. | |
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