Help Me Find Tax Loopholes

Discussion in 'Washington Fishing Reports' started by Captain Decent, Jun 6, 2019.

  1. Captain Decent

    Captain Decent I've posted enough I should edit this section

    Location:
    Covington, wa
    Name:
    Ryan
    Boat:
    The Bert Makes ’em Squirt
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    I’m looking for any tax loopholes I can find before I lose my ass at the DMV in sales tax.

    I went in once and they turned me away cause I bought a CG documented vessel and they didn’t know how to deal with it. It doesn’t have any reg numbers on it. Guessing I still have to register it.

    Does this qualify as a second residence/house? And if so what can I get out of that?

    Company vehicle? I’m the owner of “offshore Solutions” and need a means of transportation of course. Slap some decals on this thing? What does this net me?

    Any other ideas? Anything helps god bless.
     
  2. Wild Bill

    Wild Bill Drinking the Suzuki Kool-aid and liking it!

    Location:
    Camano Island
    Name:
    Steve
    Boat:
    Otter Craft
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    The only thing I know of is if it has a shitter and cooking facilities it can be considered a second home. All this will get you is a write of on the interest you pay on a loan against it. If no loan I don’t think it will help you. Not a tax guy but this is my experience. Get a coast guard credential and a business lic and start a tour business with said boat and you can write off all kinds of stuff. As always ymmv.
     
  3. The Peddler

    The Peddler You should have been here yesterday!

    Location:
    Olympia, WA
    Name:
    Matt
    Boat:
    2400 SeaSport Explorer - "Permanent Waves"
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    As a second residence, you’re able to claim/deduct the load interest from your annual tax return.

    My dads corporate accountant advised against claiming corporate ownership of recreational vehicles, as it will nearly guarantee you’ll be flagged for IRS audit, and also potential liability should something “Bad” happen.

    In Washington State, USCG Vessels do still require registration, though you don’t have to display the WN numbers.

    You’ll have to pay sales tax on the purchase price when you register. If you’d been pro-active, you could have had the seller provide a bill of sale for the hull and a separate bill for everything else. Then you’d pay tax only for the purchase of the hull.
     
  4. hawksfan75

    hawksfan75 More questions than answers

    Location:
    Kent, WA USA
    Name:
    Eric
    Boat:
    Hydra Sports 2200 DC
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    Call your accountant. If my 22’ dual console qualifies for a second home, then I guarantee you that yours does.

    As for the sales/excise tax, I generally get that back as a deduction.

    Step 1: call your accountant
    Step 2: collect rewards points on your credit card.
     
    bigdood likes this.
  5. OMEGA

    OMEGA Well-Known "Member"

    Location:
    WA
    Name:
    MCS
    Boat:
    40 Cabo FB
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    There is No Loophole on paying the sales/use tax. Had you sold another boat in the process of purchasing this boat a good escrow company could have handled that and you would have only paid tax on the difference between sale price of the last boat and purchase price of this boat.

    Also whatever amount used when you register the boat in WA will be the baseline used to set excise tax schedule for future annual registration fees. I will post schedule in a moment.
     
    Ducky Duckworth and richardp like this.
  6. OMEGA

    OMEGA Well-Known "Member"

    Location:
    WA
    Name:
    MCS
    Boat:
    40 Cabo FB
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  7. DaKanati

    DaKanati Captain

    Location:
    belfair,washington
    Name:
    Josh
    Boat:
    272 Sailfish "ManCave"
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    Get a quote for large repairs needed and take that to the DMV with you and those costs will come off the price paid which will lower the taxes. I'm sure it must need at least new twin outboards
     
  8. plj46

    plj46 I've posted enough I should edit this section

    Location:
    Socal
    Name:
    jim
    Boat:
    24 ft grady white
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    Talk with your tax guy.
     
  9. Salmon King

    Salmon King I've posted enough I should edit this section

    Location:
    Everett, WA, USA
    Name:
    Tim
    Boat:
    Salmon King 21' Custom Pilothouse
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    Fixed head can get it counted as a second residence. You can deduct interest on the loan if you have one. However, unless you have a large note it doesn’t amount to a ton.

    If you use the vehicle for a business, you can deduct depreciation. However, like was mentioned prior, this may attract IRS attention unless your business is being a (legal) charter.

    DMV is evil! I hate paying for that sticker for the first time!
     
  10. richardp

    richardp I've posted enough I should edit this section

    Location:
    Burlington WA
    Name:
    Richard
    Boat:
    2470 Pursuit 300 Yami
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    Is there a lienholder?
     
  11. Captain Decent

    Captain Decent I've posted enough I should edit this section

    Location:
    Covington, wa
    Name:
    Ryan
    Boat:
    The Bert Makes ’em Squirt
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    Normally I’d have worked on the BOS sales price but it was through a broker and I paid cash on the barrelhead so no interest write offs for a loan.
     
  12. Captain Decent

    Captain Decent I've posted enough I should edit this section

    Location:
    Covington, wa
    Name:
    Ryan
    Boat:
    The Bert Makes ’em Squirt
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    I just need to sell the outriggers, fighting chair and radar arch and that might almost cover the raping I’m about to receive from the state.
     
  13. richardp

    richardp I've posted enough I should edit this section

    Location:
    Burlington WA
    Name:
    Richard
    Boat:
    2470 Pursuit 300 Yami
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    Did you list the actual consideration# on the USCG bill of sale?
     
    Last edited: Jun 7, 2019
  14. richardp

    richardp I've posted enough I should edit this section

    Location:
    Burlington WA
    Name:
    Richard
    Boat:
    2470 Pursuit 300 Yami
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    Delete
     
  15. Tomictime

    Tomictime Crusty Old Salt

    Location:
    Poverty Bay & Carlsbad
    Name:
    Jim
    Boat:
    Coldwater 37. The Way
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    your HIN must be permanent to document so you use that to register in WA, not difficult
    Federal tax changes last year were not soo kind on deducting other taxes, loan interest caps.
    YES you could depreciate it in a business and when you eventually sell it pay recapture taxes, assuming you of course report the disposition of the company asset. Of course the IRS loves to audit the “ hobby” business...

    another option is buy. a commercial license, flag vessel as such, say AK black cod....talk to Dock Street Brokers
    your insurance company may or may not play....
     
  16. richardp

    richardp I've posted enough I should edit this section

    Location:
    Burlington WA
    Name:
    Richard
    Boat:
    2470 Pursuit 300 Yami
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    I assume he already put CG docs through as rec. and the clock is ticking to get it registered since he is WA resident. At this point i think time is his enemy and may be too late to unwind what is done. Maybe he can go back to CG and ask for redo?
     
  17. G-Spot

    G-Spot Captain

    Location:
    Salem/OR/USA
    Name:
    John
    Boat:
    53’ Hatteras STEEL N TIME
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    As Matt said above, his father’s accountant recommended against it. My accountant did the same for me, until I opened a charter company. Yachts/boats have a specific IRS code and my accountant read it to me and it is very specific. He also said it can be a red flag and open up your taxes to more scrutiny.

    I know people who do it and get away with it on boats, motorhomes, and such as company vehicle. They are only getting away with it because they haven’t been audited. It’s not a legit write off...It’s all in how much risk you want to take...

    As said if you have a loan a second home the interest can be written off....
     
  18. Tomictime

    Tomictime Crusty Old Salt

    Location:
    Poverty Bay & Carlsbad
    Name:
    Jim
    Boat:
    Coldwater 37. The Way
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    he could redoument thru CG but the under lying HIN would not change, nor would the $ deal.
     
  19. Barracuda1

    Barracuda1 Master of None

    Location:
    All over this bitch!
    Name:
    Fred
    Boat:
    Defiance 220 EX (BARRACUDA II)
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    Welcome to Washington now :shakin: an take it :indabutt:
    This is one of, if not the most taxed of all states.
    They don't call it the Evergreed State for nutin
     
  20. One_Leg

    One_Leg Ret. Comm. Diver/Medic

    Location:
    You're mined!
    Name:
    Alan
    Boat:
    1967 Cobia Cuddy Cabin/Evinrude Looper
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    Where the poophole is your loophole.

    Isn't that the state motto?
     

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