By Bruce Nason PC
If you deduct your boat payments as a second home on your Federal Income Taxes there may be changes in the wind. “There’s absolutely no reason why taxpayers should subsidize luxury yachts,” said Democratic Representative Mike Quigley of Illinois when he introduced the two-page bill in 2013. It amends a provision in the federal tax code that allows boat owners to deduct mortgage interest on vessels used as second homes. Boat owners qualify if the vessel has basic living accommodations, including a toilet, a galley kitchen, and a place to sleep. The 73-year-old tax break applies to small weekend sailboats as well as multimillion-dollar yachts. It’s one of many provisions under scrutiny as Congress considers a major overhaul of the tax code. The bill’s sponsors say cutting the break for boats will save more than $150 million over 10 years—however the boat industry argues it’s not the rich but average Americans who’ll take the hit, the average boat loan is for $49,000, and more than three-quarters of owners have household incomes of less than $100,000.
On a happier note, our cold harsh winter has had at least one good effect. The nearly total ice cover of the great Lakes, Lake Michigan and Lake Heron in particular, has caused the water level to raise more than a foot from last year and predictions are that the water level will continue to increase throughout the summer. The downside however, the winter ice cover is expected to keep water temperatures colder than in the past several seasons, which of course will also affect the air temps out on the water.
Watch for a BIG sale on left over 100th Anniversary clothing. General Manager Pat Nora will be marking down the prices of polos, t-shirts, jackets and ball caps with the anniversary logo. Speaking of our 100th Anniversary, Rear Commodore Jerry Kedziora is putting the finishing touches on the frames for the tile murals in the front entrance and the much delayed, and I humbly apologize for that, anniversary book is in the final proofing stage and will be off to the printer very soon. Every member will receive a copy when complete.