Court Seems Unclear on House Versus Boat Question

By JESSE J. HOLLAND | October 3, 2012

  • October 3, 2012 at 3:07 pm
    A cup may float says:
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    But I’m not going to build my house on it!!!

  • October 3, 2012 at 3:07 pm
    Chris says:
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    I bet that if the City had agreed that it wasn’t a “vessel”, but a house, and then appraised it and taxed it as if it was prime waterfront property, that this guy would be making the opposite arguments.

  • October 3, 2012 at 3:15 pm
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    This is indeed a “vessel”, the city was within their rights to assess federal lien through admiralty (federal) jurisdiction. The “floating home” as the owner alleges, was moored/docked at a Marina facility, on navigable US waters. Whether floating with or without power, regardless, it is a vessel. Sailboats under sail, without power, are still “vessels”. I am curious if the question of insurance ever came up in this case….did the owner have insurance at all….if the owner did have insurance, I would venture to guess that it was with a boat insurance carrier, not a homeowners insurance carrier.

    Alycia McGlone, CMIP-Certified Marine Insurance Professional
    VP Commercial Marine

  • October 3, 2012 at 4:22 pm
    jw says:
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    The IRS has a definition and Interest paid on loans on Yachts are deductible as second homes. There is a set of standards for the deduction. Can’t deduct you car loan interest but you can deduct you yacht loan interest. .Will Mitt get rid of this loophole???

    • October 9, 2012 at 9:40 am
      JW says:
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      JW: IRS rule to allow Yacht’s loan Interest vs. Car loan Interest: A Yacht is considered a home for all sense and purpose, therefore it would make perfect sense to allow the interest paid to be a deductable line item. It also makes sense to incentive the wealthy to purchase luxary items such a yacht that dumps, sometimes, $30+ millions into our economy, not including the millions in upkeep every year (rule of thumb is contemplate 10% of the cost of a yacht for the upkeep). Where a car is a almost always a neccissity and only put a few thousand back into the economy. Tax the neccessities and incentive that luxuries. to simplify its like when we were in grade school. It was expected that you showed up, did your homework and got good grades. Its when you wen the extra step and did the bonus question that you got a reward.

      They should try more of a penalize the rich for holding too much income in savings and let them spend baby, spend!

  • October 4, 2012 at 12:39 am
    John says:
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    It appears the owner was resident on a box barge. With accommodation built on it.
    These are common in Europe, the Far East and North America.
    Usually they have to be moved by another powered vessel, i.e., tug, pusher tug etc.
    Hence, the owners argument it was a house and not a vessel seems futile.



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