Post by Steve Sutton on Mar 22, 2010 10:25:04 GMT -5
Tax Time Tip:
Boat Owners May Have Federal Tax Deductions Available
ALEXANDRIA, Va., March 16, 2010 - Recreational boat owners who paid state sales taxes on a boat purchase, or those who secured a loan to finance a boat, may have some tax deductions available when filing their 2009 federal income tax return.
The Sales Tax Deduction For boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 continues to offer a federal tax deduction for state sales taxes. Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return -- you cannot take both.
In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state's general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A , line 5b.
The Boat Loan Deduction
For those owners with a secured boat loan, mortgage interest paid on the loan may be deducted from your federal income taxes. Taxpayers may use the home mortgage interest deduction for one second home in addition to their primary home, and must itemize deductions on their returns. A boat is considered a second home for federal tax purposes if it has a galley, a head, and sleeping berth.
Some boaters may be unaware of this potential tax benefit because not all lending institutions send borrowers an Internal Revenue Service form 1098 which reports the interest paid. Not receiving the form does not preclude taking the deduction. If a 1098 is not available, boaters should contact their lender for the amount of interest paid and should enter it on line 11 on Schedule A along with the lender's tax ID number. If a form 1098 is sent, boaters should simply enter the amount on line 10 of Schedule A.
Sorry, AMT
For those who fall under the Alternative Minimum Tax, most deductions are unavailable as taxes are calculated differently. Boaters are urged to contact a tax preparer or financial advisor for more information.For more details on the mortgage deduction, go to www.irs.gov/ and download Publication 936 or the Fact Sheets .
For state tax deduction information download Publication 600 , which also includes state-by-state tax tables.
About BoatU.S.BoatU.S. - Boat Owners Association of The United States - is the nation's leading advocate for recreational boaters providing over half a million members with government representation, programs and money saving services.
For membership information visit www.BoatUS.com or call 800-395-2628.
TO VIEW THE OLDER POSTS SIMPLY GO TO www.burning-daylight.com/ AND 'CLICK' ON THE 'FORUMS' BUTTON. THERE, YOU'LL FIND STATE RECORD CATCHES, GUN CARE, BOAT MAINTANENCE, RECIEPES AND MORE.
If you would like to have your product considered for a review in a Burning-Daylight.com VIDEO WEBSITE episode, contact Steve Sutton, burningdaylight1@netzero.com
And if you've got a great outdoor tip, email it AJ Cannon at burningdaylight1@netzero.com
To send this article to a friend, click on the "envelope" icon below. Bookmark this site and check back often as the information is updated daily
Boat Owners May Have Federal Tax Deductions Available
ALEXANDRIA, Va., March 16, 2010 - Recreational boat owners who paid state sales taxes on a boat purchase, or those who secured a loan to finance a boat, may have some tax deductions available when filing their 2009 federal income tax return.
The Sales Tax Deduction For boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 continues to offer a federal tax deduction for state sales taxes. Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return -- you cannot take both.
In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state's general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A , line 5b.
The Boat Loan Deduction
For those owners with a secured boat loan, mortgage interest paid on the loan may be deducted from your federal income taxes. Taxpayers may use the home mortgage interest deduction for one second home in addition to their primary home, and must itemize deductions on their returns. A boat is considered a second home for federal tax purposes if it has a galley, a head, and sleeping berth.
Some boaters may be unaware of this potential tax benefit because not all lending institutions send borrowers an Internal Revenue Service form 1098 which reports the interest paid. Not receiving the form does not preclude taking the deduction. If a 1098 is not available, boaters should contact their lender for the amount of interest paid and should enter it on line 11 on Schedule A along with the lender's tax ID number. If a form 1098 is sent, boaters should simply enter the amount on line 10 of Schedule A.
Sorry, AMT
For those who fall under the Alternative Minimum Tax, most deductions are unavailable as taxes are calculated differently. Boaters are urged to contact a tax preparer or financial advisor for more information.For more details on the mortgage deduction, go to www.irs.gov/ and download Publication 936 or the Fact Sheets .
For state tax deduction information download Publication 600 , which also includes state-by-state tax tables.
About BoatU.S.BoatU.S. - Boat Owners Association of The United States - is the nation's leading advocate for recreational boaters providing over half a million members with government representation, programs and money saving services.
For membership information visit www.BoatUS.com or call 800-395-2628.
TO VIEW THE OLDER POSTS SIMPLY GO TO www.burning-daylight.com/ AND 'CLICK' ON THE 'FORUMS' BUTTON. THERE, YOU'LL FIND STATE RECORD CATCHES, GUN CARE, BOAT MAINTANENCE, RECIEPES AND MORE.
If you would like to have your product considered for a review in a Burning-Daylight.com VIDEO WEBSITE episode, contact Steve Sutton, burningdaylight1@netzero.com
And if you've got a great outdoor tip, email it AJ Cannon at burningdaylight1@netzero.com
To send this article to a friend, click on the "envelope" icon below. Bookmark this site and check back often as the information is updated daily
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