BoatUS Report

Tax Tip: Boat Owners May Have Federal Tax Deductions Available

Recreational boat owners who paid state sales taxes on a boat purchase, or those who secured a loan to finance a boat, may have some tax deductions coming to them when filing their 2011 federal income tax return. The tax tip comes from the nation’s largest boater’s advocacy group, Boat Owners Association of The United States (BoatUS).

The Sales Tax Deduction For boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 continues to offer a federal tax deduction for state sales taxes.  Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return – you cannot take both.

In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state’s general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A, line 5b.

The Boat Loan Deduction For those owners with a secured boat loan, mortgage interest paid on the loan may be deducted from your federal income taxes. Taxpayers may use the home mortgage interest deduction for one second home in addition to their primary home, and must itemize deductions on their returns. A boat is considered a second home for federal tax purposes if it has a galley, an installed head and sleeping berth.

During federal budget negotiations last year, Congress sought to eliminate this deduction for boat owners while keeping it in place for second home and recreational vehicle owners. BoatUS lobbied aggressively for a more equitable all-or-nothing approach when applying the deduction, and boaters did not get unfairly singled out.

Some boaters may be unaware of this potential tax benefit because not all lending institutions send borrowers an Internal Revenue Service form 1098 which reports the interest paid. Not receiving the form does not preclude taking the deduction. If a 1098 is not available, boaters should contact their lender for the amount of interest paid and should enter it on line 11 on Schedule A along with the lender’s tax ID number. If a form 1098 is sent, boaters should simply enter the amount on line 10 of Schedule A.

Sorry, AMT For those who fall under the Alternative Minimum Tax, most deductions are unavailable. Boaters are urged to contact a tax preparer or financial advisor for more information.

For more details on the mortgage deduction on boats that qualify, go to www.IRS.gov and download Publication 936 or the Fact Sheets. For state tax deduction information, download Publication 600 which also includes state-by-state tax tables.

About BoatUS: BoatUS – Boat Owners Association of The United States – is the nation’s leading advocate for recreational boaters providing over half a million members with government representation, programs and money-saving services.  For membership information visit www.BoatUS.com or call 800-395-2628.

 

Dock News

NORTHERN MARINE’S MODULAR CONSTRUCTION SPEEDS THE BUILD PROGRESS OF THE 85-FOOT BLOOD BARON

Promising to be a spectacular addition to Northern Marine’s family of expedition yachts, the 85′ Blood Baron is rapidly becoming a reality.  Since construction began in October 2011, the hull is laid and interior construction is well underway.  Utilizing an extremely efficient modular building method requires precision calculations, but it’s speeding Blood Baron‘s progress along.

The lower deck’s four complete staterooms are being built on the shop floor and will be craned into place once nearly complete.  Rough-in framing, ceiling grids, insulation, piping and cabling are already finished.  Work now progresses to the interior staircases and furniture bases.  This deck includes a VIP stateroom with king-size walkaround bed, two queen guest staterooms and a crew cabin, all with ensuite heads.

All plumbing, flooring, furniture and fixtures will be installed prior to placing the modules into Blood Baron‘s hull.  The pilothouse, flybridge and skylounge will be built in the same way—down to having the pilothouse dashboard and furniture in place.

While extremely large craft such as cruise ships often utilize modular construction, it’s unusual for custom yacht builders.  “This allows us to completely tailor to an owner’s desires more efficiently.  But it’s a complex process, a big challenge that can be considered a risk,” said Northern Marine president Andy McDonald.

 

“You really have to be smart and meticulous about your engineering and planning.  Luckily, I have an excellent team here, they arrive in the morning having thought about their job, and how to do something better.  Not many people can do this kind of building at this level of boat.  To walk through Blood Baron, so far along in two different locations, is exciting.”

Efficiency and safety are the big rewards of modular construction.  Craftsmen walk up two stairs to the staterooms, instead of three flights.  Tools and materials are nearby, readily accessible.  Plumbing installs under the floors, instead of being worked through spaces within the hull.

All fairing will also be done on the shop floor, said McDonald, “a perfect example of a safer way of working.  Instead of having someone in a lift and a safety harness 20′-30′ up in the air, he’s working at ground level.  Everything gets done more quickly, but more safely.”

Blood Baron will be powered by a single 600 hp Caterpillar C18 with a top speed of 13 kts.  Her range will be 5,750 miles at 10 kts.  An extended superstructure brings the pilothouse aft to create a panoramic skylounge with a bar and home entertainment center, while maintaining space for a stateroom behind the wheelhouse.  Its expansive glass wall with sliding doors opens up the aft deck for outside dining.

The main deck features a country-kitchen style galley and great-room dining area.  A spacious flybridge has storage for a 17′ tender, PWCs or motorcycles, as well as a lounge area with spectacular views.

Northern Marine, founded in 1995, is an award-winning builder of custom expedition yachts.  The 57′-151′ long-range vessels combine rugged exterior design and commercial systems with stylish interiors.

Contact Northern Marine, 310 34th St., Anacortes, WA 98221.  360-299-8400.  info@northernmarine.com www.northernmarine.com

 

Products

COBRA INTRODUCES NEW LINE OF TWO-WAY RADIOS

Expanding its range of GMRS radios, Cobra Electronics introduces two powerful two-way radios.  The affordable CXT135 and CXT235 feature advanced NOAA Weather Radio (NWR).  The CXT235 also has All Hazards Alert, providing audible alerts.

The new NWR feature allows listening to the NOAA Weather Radio All Hazards broadcasting of continuous weather information directly from the nearest National Weather Service nationwide network of transmitters.  NWR relays official weather service warnings, watches, forecasts and other hazard information 24 hours a day, 7 days a week.

The CXT135 (top left) is the most economical weather radio on the market.  It has a range of up to 16 miles, Power Saver circuitry for extended battery life, Call Alert and rechargeable NiMH batteries.

The powerful CXT235 includes all the features of the CXT135, plus a larger range of up to 20 miles.  It also features NOAA All Hazards Alerts, which provide loud audible tones in the event of a weather alert or other emergency.  The NOAA Alert feature activates an automatic alarm on the radio if NOAA sends a tone alert with the warning.  The tone will activate an alarm on the CXT235, even if the audio volume is turned down.  This is especially useful for warnings which occur at night when most people are sleeping.

The 2012 two-way radio lineup also includes the CXT425, CXR725, CXR825 and CXR925 models.  They also feature maximum performance and a range of up to 35 miles, advanced NOAA weather and emergency radio capabilities, rechargeable high-performance LiON batteries and desktop chargers and Cobra’s Rewind-Say-Again digital voice recorder.

Cobra Electronics’ CXT135 has a MSRP of $49.95, while the CXT235 is listed at $59.95.  They will be available in March.

Cobra Electronics is a leading global designer and marketer of communication and navigation products, with a track record of delivering innovative and award-winning products.  Building upon its leadership position in the GMRS/FRS two-way radio, radar detector and Citizens Band radio industries, Cobra identified new growth opportunities and has aggressively expanded into the marine market and has expanded its European operations.  The Consumer Electronics Association, Forbes and Deloitte & Touche have all recognized Cobra for the company’s innovation and industry leadership.

To learn more about Cobra Electronics, please visit the Cobra site at www.cobra.com.  Follow Cobra on Twitter at www.twitter.com/CobraElectronic and Like Us at www.facebook.com/CobraElectronics.

Contact Cobra Electronics Corporation, 6500 West Cortland Street, Chicago, IL 60707.  773-889-8870.  productinfo@cobra.com

 

Products

CONTINUOUS DUTY 3″ DC BLOWER CLEARS THE AIR

Even small vessels can have big exhaust issues in engine rooms and other enclosed spaces.  To prevent dangerous fumes from accumulating, Delta “T” Systems offers its compact but powerful new 3″ DC Blower.

The 12 volt blower provides extreme air volumes at very high static pressures, rated at 125 cfm.  Unlike other blowers, this model is continuous duty rated for long-term reliability.  Ideal for gasoline engine applications, it is fully ignition protected.

This efficient air mover features a flange mount exhaust port to simplify installation.  Its rugged, marine-grade, ABS plastic housing resists corrosion.  The stainless steel shaft and bronze bearings provide smooth, quiet operation.  It measures 7″ W x 6″ H x 6″ D.

The 3″ DC blower from Delta “T” Systems is assembled in the USA.  Extremely aggressive introductory pricing with quantity discounts are available for distributors and OEMs.  It retails for $98.92.

            Contact Delta “T” Systems, 858 W 13^th Ct., Riviera Beach, FL  33404.  561-204-1500
Fax: 561-848-1611.  info@deltatsystems.com; www.deltatsystems.com.