# Buy boat through S-Corp?



## Snelly (Oct 3, 2007)

Hi All,

Does anyone know the ins and outs of using your own S-Corp to buy a boat?

I'm womdering if there is a tax avoidance gain to use your own company to buy the boat and therefore you could have the company pay maintenance, fuel, etc.

What are the tax issues here?
Can you purchase a second hand boat?

I'm thinking that it will get put down as an asset but not sure:blink:


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## Orion45 (Jun 26, 2008)

Check with your CPA. He can give you the best answer based on your particular circumstances.


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## MrFish (Aug 21, 2009)

Check with your accountant.


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## Evensplit (Oct 2, 2007)

assuming you already have an s-corp, if you can justify it as a business expense you can write at least part of it off. There are insurance issues to deal with. 
Go with the previous advice - check with your accountant before you do anything!


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## Instant Karma (Oct 9, 2007)

You are going to have to justify it as a business, that means you have to make a profit every once and a while. Otherwise its a hobby loss, not deductible.


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## TURTLE (May 22, 2008)

Instant Karma said:


> You are going to have to justify it as a business, that means you have to make a profit every once and a while. Otherwise its a hobby loss, not deductible.


*I have had three boats purchased buy an S-Corp for advertizing. The boats were registered in the business name and used for entertaining clients. I have never deducted 100% of the cost of ownership because I used it personaly as well but I am no CPA, check with one as all others have advised.*


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## Snelly (Oct 3, 2007)

Thanks for the replies.

I've sent a message to my accountant to see what they say.


Just thought it might be a good way to get my company to work for me.

I know of people in the UK that bought boats through their company as a charter, but then never managed to charter it. The boat was still an asset of the company which needed maintenance and regular use/fuel to maintain it .

Insurance would be paid by the company as the boat would be registered by it, so not sure what issues there might be there.

Interesting one though...


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## sealegs (Jan 11, 2010)

*boat purchase*

Im anxious to hear what your accountant has to say, mine said the fastest way he new to get an audit was to try to write off a airplane or a boat, we just take expenses when we take out clients .Heavy documentation is also required,even when its the accountant i take out. Rick


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## MGlover54 (May 11, 2011)

Why not buy it personally then lease it to the company for a fee "when you go out"?


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## Snelly (Oct 3, 2007)

Yup, looks like its more trouble than it's worth.

My accountant echoes what others say. As no revenue would be generated it would go down as a hobby and basically negate any benefits.

I like Mike's idea of buying it myself and leasing it back to the company...


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## off route II (Sep 28, 2007)

sealegs said:


> Im anxious to hear what your accountant has to say, mine said the fastest way he new to get an audit was to try to write off a airplane or a boat, we just take expenses when we take out clients .Heavy documentation is also required,even when its the accountant i take out. Rick


you hit the nail on the head.


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## MrFish (Aug 21, 2009)

I know one guy that has bought boats, through the years, through his company. And I really think the main reason was to keep his future ex-wife away from them.


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## Lucky Dawg (Oct 6, 2007)

You could limit your liability if something bad happened and the scorp owns the boat.


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## MrFish (Aug 21, 2009)

Lucky Dawg said:


> You could limit your liability if something bad happened and the scorp owns the boat.


You could also extend your liability. If your company is your livelihood, what happens if the doors get shut, because of a boat wreck? I'm sure you can get your GL to cover the boat, but what would that cost? Would it be worth it to add that over regular boat insurance? I doubt it, you would be paying twice for insurance. One to cover your boat and one to cover your company, because the boat is a huge liability.


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## fishn4real (Sep 28, 2007)

Lucky Dawg said:


> You could limit your liability if something bad happened and the scorp owns the boat.


Not necessarily. Corporate ownership does not shield against liability, especially if it can be shown that the asset was purchased through the company as a means to shield liability in the first place. It used to be that one could easily avoid liabilities by putting assets in the name of the company, but company veils are easily pierced in this day and time.

Best bet is to always consult an expert. (I know, I know; everyone on the forum is an expert. Or is that the other forum, dang..I forget.:whistling

Talk to lawyer and/or accountant, or best scenario, a tax attorney.


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