Capitol gains from boat sale

Forum|Forum|5 years ago
August 21, 2020
2 replies
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How do I avoid Capitol gains from my boat sale? Purchased about 3-4 years ago for $16,000 and could possibly sell for 40,000. How can I prove the boat was my primary home?

Appreciate advice:)

Best answer by Anonymous_

Recall that your boat, to be considered a residence, must at least contain basic living accommodations such as a place to sleep as well as toilet and cooking facilities.

Anonymous

If it was and the IRS inquires you should be able to show them that's where your bills, mail, etc come to. The boat's address would also likely be what you use on your tax returns even the address you use for voter's registration. in effect, you are in the same position as a person with a second home who sells one of them.

KenpainterAuthor

Thanks, my mailing address is at the marina. IRS and banking address is at marina. Any other proof needed? Thanks again.

Anonymous_

Employee

@Kenpainter wrote:

Thanks, my mailing address is at the marina. IRS and banking address is at marina.

That should be mostly sufficient, particularly if you have that address listed as the address on documents such as your tax returns, driver’s license, voter's ID, W-2s/1099s, and the like.

Anonymous_Answer

Employee

Recall that your boat, to be considered a residence, must at least contain basic living accommodations such as a place to sleep as well as toilet and cooking facilities.