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February 8, 2003
Tax tips and other valuable information for boat owners
By NANCY NEUROHR
t's
tax time again! The time of year we all dread the most but for
some boat owners, there may be a deduction you are overlooking.
The IRS allows you to claim a deduction on some boat loans. As long as your vessel meets the criteria for a second home, the Internal Revenue Service (IRS) should have a deduction for you."For tax purposes, many boats qualify as second homes just like land-based vacation condos and mobile homes," said Elaine Dickinson of BoatU.S. Government Affairs. "If you have a secured loan on that vessel, the IRS allows a tax deduction on the interest paid on the loan."
The IRS defines a second home as having "basic living accommodations such as sleeping space, toilet and cooking facilities." A secured loan is one where a lending institution holds the boat as collateral for the loan.
The Details
Interest paid on the loan should be reported on the federal income tax return Form 1040, Schedule A, Itemized Deductions. Boat owners who received a 1098 form from their lender should enter the amount of interest paid on line 10. If they did not receive a 1098 form, they should enter the amount on line 11 and provide the lender's name, address and tax identification number. For more specific tax information, boat owners should consult their own financial or tax advisors or visit the IRS Web site.
(see link above) IRS Publication 936 also covers rules for interest deductions.
Boat Buyers can now use the BoatUS 'CPB Compliant Database to help make informed boat
purchase choices
Whether you are looking to buy a new or used boat or motor, rent a
marina slip, charter a sailboat, or buy a fish finder, boaters can make an informed purchasing decision by first checking with the BoatU.S.
Consumer Protection Bureau's Complaint
Database. This valuable service tracks patterns of complaints registered by consumers, boat owners, surveyors, marine technicians, mechanics and service bulletins. Defect recalls are also documented.
"The Complaint Database is the only industry-wide source for boaters wanting to make a smarter purchase," said Caroline Ajootian, assistant vice president, BoatU.S. Consumer Protection Bureau. "We don't rate or evaluate the complaints - our mission is to simply document and share the information given to us. The complaints on file speak for themselves."
Since 1988 the database has tracked complaints on an array marine products and service providers including boats, outboard engines, marine electronics and accessories, dealers, boatyards, manufacturers, marinas and more.
Information from the Bureau's database is available by clicking on the link above, or by calling
703-461-2856. You can also inquire via email: ConsumerProtection@BoatUS.com.
Boaters with NEW Ship-to-Shore VHF DSC radios: Register to get your FREE Maritime Mobile Service
Identity
If you were a good boater throughout 2002, you may have been one of
the lucky ones to get a Digital Selective Calling (DSC) VHF radio from
Santa. To add to this wonderful lifesaving gift, you can register your radio and get a free Maritime Mobile Service Identity (MMSI)
number. You can view details about this service by clicking HERE or you can phone BoatU.S. toll-free at 800-563-1536.
"We have it on good authority that Santa was very generous with DSC VHF
radios this holiday season," said BoatU.S. Founder and Chairman Richard
Schwartz. "We believe it's because many
boaters had been boating safely,
following the nautical rules of the road, and being great stewards of our
waterways."
With the pressing of one button, DSC VHF radios allow anyone on board to
send a continuous distress message that contains the vessel's identity and
contact information - even if the captain is incapacitated. And if the
DSC VHF is connected to a GPS or Loran, the distressed vessel's latitude
and longitude position is also automatically broadcast. However, for
these automatic functions to work properly, boaters must register to
receive an MMSI number.
While The U.S. Coast Guard is not expected to fully monitor DSC distress
calls until 2006, DSC equipped vessels in the broadcast area will receive
the automatic distress call and identification information - and may be
potentially able to respond.
A DSC VHF radio also retains all the
functions of a non-DSC VHF radio and can broadcast a channel 16 voice
distress message.
For non-emergency purposes, a MMSI works like a "VHF phone number." An
MMSI avoids having to monitor high traffic channels just for a hail from
your boating buddy - the DSC VHF "rings" like a telephone, notifying you
that you have a call.
An MMSI issued by BoatU.S. is only valid for recreational vessels in
domestic waters. 
BoatU.S. - the nation's leading advocate for recreational boating issues before Congress and the federal agencies - provides its 535,000 members with a wide array of consumer services including a group-rate marine insurance program that provides over $7 billion in hull coverage; a fleet of more than 400 towing assistance vessels; discounts on fuel and slips at nearly 700 marinas; and a subscription to BoatU.S. Magazine, the most widely read boating publication in the U.S.