Click for Ocean Alexander Click for JetForums Click for Northern Lights Click for Burger Click for Westport

Tax Benefits? & Would you pay $150k for this?

Discussion in 'General Yachting Discussion' started by lucasilf, Sep 9, 2007.

You need to be registered and signed in to view this content.
  1. lucasilf, Sep 9, 2007
    #1
    lucasilf

    lucasilf Guest

    Hi everyone, I am looking at a 2001 Formula 37pc listed at $175k with a broker with about 150 hours on it. I know they will take $150k but I am thinking that is still high based on these:


    http://boats.iboats.com/formula_boats/260030.html

    http://www.**************/core/list...jsp&n=2%3A-1%3A39269%3A51196%3A84&searchtype=

    #2 What other ocean motorboats (maybe something comporable to the Formula PC class) would you recommend for light ocean cruising in southern California around the $150k range?

    #3 I have tried searching but haven't seen any threads on tax deductions for owning a boat for business purposes (besides chartering) like for corporate events and client entertainment. Does anyone have anything helpful?

    Thanks!
  2. Roger Herd, Sep 9, 2007
    #2
    Roger Herd

    Roger Herd New Member

    Joined:
    Sep 7, 2007
    Messages:
    2
    Location:
    The Hamptons, NY
    Not a bad price

    150K is a very fair price for the 37 if she is in average condition with good gelcoat, low hours (below 300), and a minimal amount of wear and tear. Just because there are other boats on the market that you may be able to pick-up for less does not mean that they are a better deal. Boats with proper maintenance and care should command a higher price. And in in the long run they will cost you less on ownership.

    Talk to your accountant or tax advisor on the write-offs. If you are in sales you may legitimately be able to write-off a portion for entertainment expenses. Also, if you do not own a 2nd home, you may be able to claim the vessel as a 2nd and write-off some of the interest (if financing).

    Good luck
  3. lucasilf, Sep 9, 2007
    #3
    lucasilf

    lucasilf Guest

    Thanks for the response! It is definitely in great condition. Out of town owners who just let it sit in the harbor but had it regularily maintained.

    I am definitely looking for information on writing it off for my sales business by entertaining clients and corporate events. Does anyone have any information? Any other opinions on value?
  4. yachtbrokerguy, Sep 10, 2007
    #4
    yachtbrokerguy

    yachtbrokerguy Guest

    You have to be careful how you do this. When using the boat "in expectation of gain", with the idea of new sales for your business because of taking clients out on the boat, you are supposed to have a licensed captain onboard.
    Some owners will charter their boats, at regular market rates, to their own company as a way of covering some expenses.You have to be careful with insurance if you are using the boat for business, and the IRS might red flag you for "luxury water travel".
    As legitimate business expenses, items can be written off, but as Roger said talk to a tax advisor. You might ask your broker for the name of a maritime attorney in your area to get more details.
    The main idea is to buy the boat for fun, if you can get some business benefits that is a bonus!
    Tucker Fallon