Boat or Camper for a second home?

Question

My buddy told me he bought a camper and is able to write off the interest because it’s a “second home”…

Which got me thinking…. Can I buy a sailboat as a second home, and write off the interest if it has a cabin? What are the rules that qualify it as a second home??

Thanks BP!

Nash Mittelman · Answer

Thanks Bruce! My whole plan was to get out of paying local property taxes haha... sounds like camper would be the way to go!

Bruce D. Kowal · Answer

Do an internet search.   Plenty of responses.  Funny thing about boats with living amenities.  In New York State, a boat is considered a personal place of abode.  And if that boat is in NYS waters for more than six months annually, you are a statutory NYS resident, and pay taxes as a resident.  Who cares?  Some people from neighboring states have boats on the Hudson River, or in NYS marinas elsewhere.  Boy, are they surprised to find that they owe NYS income tax for three years or so, with interest and penalty!  You are in the Golden State and I am sure that a NV resident with a boat in CA will face the same consequences.  Also, you may be subject to local property taxes.

Matt K. · Answer

Buying something for the write off is never a good idea....and if that something is a boat it's even worse idea 😂

Do a deep dive on how much said sailboat going to cost you and how often you'll use it. If it still makes sense then start the talks with a CPA.

You "could" in theory do something similar to what you're thinking, but doesn't mean it makes sense.