Get those rich boaters!
By Jonathan Sweet, Editor-in-Chief
November 19, 2013
Filed under Jonathan Sweet
In case you missed it, the second-home mortgage deduction that is an important tax break for many boat owners is being targeted again.
It’s one of 12 “Top Tax Loopholes” identified by the Democratic staff of the Senate Budget Committee as both houses of Congress prepare for budget negotiations. It’s item No. 5, in fact: “Stop Tax Subsidies for Yachts and Vacation Homes -- Eliminate deductions used by the wealthiest Americans that subsidize yachts and vacation homes.” The change would save taxpayers about $15 billion over 10 years.
At least this time it is targeting all second homes, not just boats, so that’s a little more fair than earlier proposals this year. It’s obviously an important tax break for a lot of boat owners, not only for the boats themselves but also to make the cabins and lake homes that encourage the boating lifestyle more affordable.
While the sentiment seems to be that it’s not going anywhere right now, it’s worth keeping an eye on and, as always reaching out to your senators and representatives to let them know this issue affects your business.