Am thinking about buying a boat thru the Moorings for charter. Am curious if anyone can give me any advise on the tax implications. I understand the conservative way is to only take second home interest and depreciation. The Moorings is clearly non owner managed.
Anyone have any advice on what the impact is on your actual tax bill each year. I understand that the Moorings will send you a 1099 for the income. This would then be offset by interest paid and depreciation. I have heard two depreciation lengths of times, one 10 years and another 18 years. Anyone familiar with which is correct.
Lastly, I won't be able to use all the owners time...Moorings will let you sell two weeks of it. Can you usually do this via a site like sailonline.com.
Thanks for the help
Dave

Hello:

I usually do not post on our forum, but I need to answer this one.
We have a consulting service for charter boat buyers, including tax information with a specialized partner. who does this ONLY.
Our service can be anywhere from a simple phone conversation to a full-fledged tailor-made consultation, with full review of the contracts, etc.
There are MANY angles to this, and specialized advice is strongly recommended (I write this even if it is self-fulfilling!). At the very least, do not base your decisions on hear-say stuff. The misconceptions I hear all the times are mind-boggling to me, and believe me, charter companies know this and they take advantage of it.

I know the Moorings contracts particularly well because a) I have owned 3 Moorings boats; and b) I am also the Commodore of the Moorings Owners Group. And NO, Moorings does not send 1099.

Anyone interested may contact me at the yachtcharters@sailonline.com

Best regards,
Michel Benarrosh