Discussion:Depreciation of Boat Used for Clamming
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Discussion Forum Index --> Tax Questions --> Depreciation of Boat Used for Clamming
| 8 February 2010 | |
| Client purchased a 20 year old boat for $5,000 and added a new motor cost of $12,000 which is purely a boat for his business of clamming.
My research found that the life of a boat is 10 years but this is already 20 years old. I was going to write it off with a life of 5 years and the motor 10 years. I'm not going to Sec 179 as the client has a loss for 2008 and 2009 and hasn't filed a tax return for 2008. I was going to file the 2008 and take a NOL back to 2005. Do you agree with my logic???? | |
| 8 February 2010 | |
| I had a mistake in my previous post as the client did not file a tax return for 2008, the regs say that I can only go back the 2 years but my questions really is on the life of the boat being 20 years old already. I live in PA so I don't have any experience with the fishing industry. | |
Death&Taxes (talk|edits) said: | 8 February 2010 |
| Clamming?? | |
| 9 February 2010 | |
| Yeah. I know. We didn't use a boat. Just a shovel and a bucket. Look at it this way, Marlene. Guy bought a used boat with a new engine for $17,000...♫ | |
| 9 February 2010 | |
| Marlene - the depreciation on the boat does not get any special treatment just because it is used in commercial fisheries. Just take the appropriate depreciation and/or section 179 deduction. It does not matter how old the boat was when he purchased it, anymore than it would if a business bought a used truck. | |
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