06-17-2016, 04:05 PM
(06-17-2016, 03:37 PM)Benton Wrote: You can't write off interest on your john boat. You CAN write off interest on your yacht claiming it as a home. Likewise, you can write off mortgage interest on your home. If you've got a second home (or a yacht) you can write that off, too.
Own a horse? They cost money and don't give many breaks... unless you own a race horse. Those have healthy depreciations and deductions.
I think it's expired, but as of a few years ago, you could also over depreciate some larger luxury vehicles provided you write them off through a business. Due to the way it was written, there wasn't anything that qualified under $60,000. I think it went up to $100,000 depreciation per year, or that might have been two years. I don't remember, and it really doesn't matter. The Hummer loophole.
None of those deductions are specific to a tax bracket. A lot of people I wouldn't consider anything close to rich or "getting charity" have a second home or vacation home (which "yachts" that hardly break the bank can qualify as).
Likewise, many self-employed people who don't make millions make questionable deductions of personal expenses as "business expense". Again, you don't have to be rich to take advantage of this.
Mortgage interest on a home? Seriously? I'm pretty sure millions of Americans that are far from rich take that deduction. If you can't afford a home then most likely you don't pay federal income tax.
Horse racing I might give you. Although it's hardly the smoking gun or that significant. Further, you actually have to make an occasional profit or it's considered a hobby and you can't deduct expenses. Of course, deductions such as this and the yacht (and Tesla cars!) are more industry subsidies than handouts to the rich. But you still don't have to be rich to own a "yacht" as a second home, or a Tesla, and you get to take the deduction regardless of your tax bracket.
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