Yacht Deduction 2020. Boaters whose boat can reasonably be considered a second home can still deduct mortgage interest. If you qualify for the deduction the amount you deduct must be in excess of 10 of your adjusted gross income 75 if youre age 65 or older.
See Dollar Limits in chapter 2. It was nearly doubled by Congress in 2017. The personal exemption is the subtraction.
Donating your boat to a charity If you are in the market for a new boat or if youre done being a boat owner you might consider donating your boat to charity.
For 2020 the standard deduction is 12400 for single filers and 24800 for married couples filing jointly. So if you charter out the boat 50 of the time you can deduct 50 of the expenses. Under Section 179 of the Internal Revenue Code you can take a one-time expense deduction in the year of purchase equal to the purchase price of your yacht up to a maximum deduction of 500000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds 2590000.
