Bass Fishin Tax Info

[td176]

Thats how I bought mine

[bigrod]

Sure is a good way to write the interest off on your taxes, BUT remember you are buying a boat on what I assume you have is a 30 year loan and what do you think your boat will look like in 30 years?

[DJD]

There seems to be two types of loans, the HELOC and i understand that the other is a term loan that is set at a fixed rate. Are both tax deductible? I want to do this but would like to know for sure that both loans can have the interest as a write off. A man could get a nice boat. I was thinking a good chunk down and maybe a 10 year loan? Any further info is greatly appreciated.

[biggw]

There seems to be two types of loans, the HELOC and i understand that the other is a term loan that is set at a fixed rate. Are both tax deductible? I want to do this but would like to know for sure that both loans can have the interest as a write off. A man could get a nice boat. I was thinking a good chunk down and maybe a 10 year loan? Any further info is greatly appreciated.

Wow Don you must be thinking of getting a pretty nice boat there man--gl to you buddy---

[Lowerider]

DJD

You can go with a HELOC or a one time pop you can pay off at a term of say five years. The HELOC is really an open account you can take draws on and is mainly used for on-going construction improvements or paying on a wedding etc. The better option is to get a basic equity loan which is a one-time pop which is generally paid off over 5 years. Your rates will be determined based on your LTV (how much equity you have in your home). Given prime is relatively high right now you won't be able to get a great rate no matter which direction you go. As far as the tax deduction, yes you can write off the interest on either type of loan given you are not in AMT. Equity interest not used for home improvements has to be added back for AMT purposes so check with your tax advisor.

[DJD]

Lowerider,
Thanks for the info! What is AMT?