Tax Deductibility

Yacht and/or boat loan interest may qualify for a second home interest deduction. Most boats that contain a galley and a head are eligible as a second home under the Internal revenue Code, meaning that borrowers can generally deduct the boat loan interest paid. This kind of deduction would ultimately be subtracted from adjusted gross income when arriving at a person's taxable income. It is similar in nature to state and local tax deductions. It is important to note that each individual's situation varies and consumers are encouraged to check with their tax professionals on whether or not the interest that they are charged on boat and/or yacht loans meets the IRS requirements for tax deductibilty.