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The tax definition of a second home
Dear Tax Talk:
Is a 34-foot boat with a galley and bathroom considered a second
If I told you your boat with the galley and bathroom is a second
home what does this mean to you?
For tax purposes, the interest paid on a second home
is tax-deductible. For most folks, this means that their homes in
the mountains become a tax write-off. However, the Internal Revenue
Service understands that some folks have nontraditional second homes.
The IRS has expanded the meaning of a second home
to include boats and motor homes. To qualify as a second home, the
boat or motor home must be livable. The IRS interprets this to mean
that if there is a bathroom and cooking facilities, you can live
Therefore, if your boat is financed, the interest
that you are paying can be claimed as additional home mortgage interest
on Schedule A.
-- Posted: March 13, 2003