Wednesday, October 14, 2009

Buy a Bigger Boat Number 9

Is the boat you're thinking about buying is big enough? Think again.

Yesterday we posted Reason # 10: It's the economy, stupid.

Reason # 9: Tax Incentives

A real estate blog in the Washington Post reminded me recently that boat owners have an excellent tax advantage available to them. That is, of course, if they already own a home and if the boat is big enough.

Boats that have a head and a galley (that’s a bathroom and a kitchen area for you newbies) may qualify as a second home in the eyes of Uncle Sam, possibly allowing you to deduct the interest on your boat loan.

So if you’re on the fence between a boat that has these amenities and one that does not, there could be a financial incentive to you in April if you go with the bigger boat with all the extra stuff.

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