Tax Provisions for Boats Extended

In Rare Act of Agreement,

Last Congress Does the Right Thing for Boat Owners

WASHINGTON, DC, January 27, 2015 -- In an exceptional act of agreement, the recently departed 113th Congress did the right thing for boat owners. It extended some boat sales tax and mortgage interest deductions when filing a 2014 federal income tax return. The catch is a boat has to include a sleeping berth, cooking and toilet facilities, and is offered to new owners who paid substantial state sales taxes on a new or used boat purchase last year. If there is a loan taken, mortgage interest paid on the loan may be also be deducted from your federal income taxes, according to the nation’s largest boater’s advocacy group, Boat Owners Association of The United States (BoatUS).

The Sales Tax Deduction

The Tax Increase Prevention Act of 2014 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, some in Congress sought to eliminate this deduction for boat owners while keeping it in place for second home and recreational vehicle owners. BoatUS advocated 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.

A boat is considered a second home for federal tax purposes if it has a galley, an installed head and sleeping berth

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.

Jackson Kayak Launches Coosa HD Fishing Kayak

Jackson Kayak’s Second Gen Coosa HD Raises the Bar for Kayak Fishing Again

SPARTA, TN - Jackson Kayak’s top design team has once again teamed up with pro kayak angler Drew Gregory to create a new version of the boat that simultaneously launched the company’s expansion from its roots in whitewater to becoming the dominant brand in kayak fishing.

Source: http://jacksonkayak.com/jk-kayaks/kayak-fishing/coosa-hd/

The Coosa HD (Heavy Duty) builds on the original Coosa’s reputation for stability, comfort and maneuverability with the addition of an updated hull design and features that truly redefine the baseline for kayak anglers.

Still primarily a river-going machine, the hull of the Coosa HD is slightly longer and wider than the original, making it faster and even more stable for a wider range of river anglers while tracking truer on flatwater lakes, ponds, and inshore conditions.

“The whole design team is justifiably proud of the original Coosa, but now I feel like I’m getting even more of the comforts and features I’ve been dreaming about since we introduced the Coosa to the marketplace in 2011,” said Jackson Kayak’s original kayak fishing team member Drew Gregory. “Good news is, with the Coosa HD all those dreams have become a reality and Jackson Kayak gets to prove once again that our commitment to user-inspired innovation keeps us at the forefront of kayak angling design.”

At 12’1” in length and 34 inches wide at the beam, the reboot of the Coosa comes packed with features that Jackson Kayak founder and bass fishing aficionado Eric Jackson predicts will become the standard in kayak fishing. A look at the deck finds this smorgasbord of features:

• New improved Elite Seat 3.0 that adjusts to multiple seating positions, fore and aft, high and low, allowing for the most efficient trim. The seat also boasts a comfortable curved seat back, new seat padding, Plano tackle box pockets underneath, and the new Therm-a-Rest lumbar pad system.
• Raymarine and Power-Pole Micro Anchor ready, with molded in features making installation of the latest in kayak fishing technologies clean, quick and easy.
• A hinged, removable, “Coosa Console” that allows for convenient fish finder integration, day hatch, Nalgene, drink holder, and a new line spooling system. It’s also easily removable for those that want a clean deck, like fly fisherman.
• Improved and enhanced rod management systems, including rod tip covers at the bow, for multiple rod holding and staging positions for fly, spin and bait casting styles, flush mounts, and standard RAM rod holders.
• Built-in GoPro mounts, and the new YakAttack Boomstick pole camera mount to enable capturing every moment of every catch and adventure on film.
• Standard Buck Knives Splizzors fishing multitool for addressing all your lure change and hook removal needs on the water.
• Padded floor to optimize the stand-up fishing experience.

On sale now at Jackson Kayak dealers across the country, the Coosa HD comes in all six standard 2015 Jackson Kayak fishing boat colors: Forest Camo, GI Jackson, Dorado, Sexy Shad, Sunrise and Urban Cowgirl. The boat weighs 79 pounds; add another six pounds with the seat. MSRP is $1699.

Boaters Have Something To Do By the Fireside This Winter: Improve Their Game

BoatUS Foundation Cuts the Cost of Online Boating Education in 2015

When cold weather conspires to keep boaters off the water, it’s time to move inside by the fire and take one of many online boating safety courses offered by the BoatUS Foundation for Boating Safety and Clean Water, US Power Squadrons and Offshore Sailing School partners. Accessible by computer, tablet or smartphone, the series of no-cost and tuition-based courses – now discounted for 2015 – give boating families time to brush up on their boating knowledge, get more confident, meet their state’s boating safety course requirements or even qualify them for a boat insurance discount. In addition to 33 individual, no cost, state-approved boating safety courses, BoatUS offers:

Weather for Boaters: Have you ever had the weather ruin your weekend on the water? What if you could anticipate the weather changes and understand what your observations really mean? From learning to recognize the early signs of changing weather to the basics of understanding storms, squalls, fog and wind shifts - the newest course from the United States Power Squadrons will help you to make an informed decision about weather to go or stay. Cost: $24.95 (formerly $35).

Boating on Rivers, Lakes and Locks: This one is the best for inland boating families. Learn what you must know to boat on our inland waterways with confidence and increase your fun on the water. Created in partnership with the US Power Squadrons, this course will teach boaters the ins and outs of inland boating, from reading a river to navigating locks to boating near dams. Cost: $24.95 (formerly $35).

Partner in Command: Are you a regular passenger or crew on a power or sailboat? Learn essential information on how to assist in the safe operation and become more confident with anchoring, signaling, handling emergencies and more. Cost: $24.95 (formerly $35).

Learn to Sail: Jump-start your sailing life or refresh your sailing techniques with the interactive lessons from America's #1 Sailing School. With this innovative online course full of video and animations, beginners will gain the knowledge to make sailing a breeze. Cost: $55 (formerly $75).

Clean Boating Course: As boaters, we have a close connection to the health of our waterways. This free course will show you the simple steps you can take to reduce the impact of boating activities on our waterways. There are also four individual courses tailored to boaters in MA, NJ, NC, and TX. Cost: $0.

DSC-VHF Radio Tutorial: What is Digital Selective Calling VHF radio, how does it work, and how can it save lives by working seamlessly with the new nationwide rescue system, “Rescue 21”? This video tutorial, at BoatUS.org/dsc, will show you how. Cost: $0.

It’s easy to start and stop any of courses at anytime, working well with today’s busy schedules. Members of BoatUS, US Power Squadrons, Canadian Power Squadrons, US Coast Guard Auxiliary and Great Lakes Cruising Club receive an additional 20% discount. To see the courses available, go to: BoatUS.org/courses.

Win $10,000 in Life Jacket Design Competition

ANNAPOLIS, MD, January 8, 2015 – Here, in a building at a nondescript suburban office park just a mile from the harbor made famous as “America’s sailing capital,” is a look into the future of life jackets for American boaters. It’s the headquarters of the nonprofit BoatUS Foundation for Boating Safety and Clean Water, and on the line is a first place prize of $10,000 for the best new design submitted for the 2015 Innovations in Life Jacket Design Competition. However, for now, there are just a trickle of entries as boaters, arm chair inventors, design, engineering or high school students have until the April 15 deadline to submit their design to BoatUS.org/design.

Five competition judges are eagerly waiting to review the entries coming in for the design contest, which hopes to seek out the newest technologies and design ideas for the next generation of these life saving devices. Teamed up with the Foundation are the Personal Floatation Device Manufacturers Association as well as the National Marine Manufacturers Association, all looking to find the best new life jacket ideas based on four criteria: wearability, reliability, cost and innovation.

Not too distant on any of the five judge’s minds was the big news on October 22, 2014 -- the US Coast Guard had eliminated the old Type I-V code labeling system which clears the path of out-of-box design ideas and is the first step in a multi-year process to get new designs to market (for more on this, go to BoatUS.com/typecodepr).

Design competition Judge Lili Colby, Co-Owner of MTI Adventurewear, a paddlesport life jacket manufacturer, said, “Manufacturers will continue to use Type I-V coding until newer labels are designed, approved, and new standards are adopted, so it’s likely a couple of years before consumers will start to see a difference on store shelves. But this is where it all starts.” Colby is an advocate of programs that increase paddling participation among young people, and understands how life jacket design can appeal – or alienate -- the younger demographic. Colby’s out-of-the-box awareness generating campaigns have included offering promotional condoms imprinted with the “Wear it” life jacket messaging. “It’s all about targeting your message – or product – with an appeal to a specific audience,” added Colby, whose manufacturing and marketing expertise is being heavily tapped as a judge.

Also from the paddling industry is competition Judge Chris Stec, whose day job is COO of the American Canoe Association, which focuses on education, stewardship, recreation and competition. An Eagle Scout who was one of the authors of the revised Boy Scouts of America (BSA) Canoeing and Whitewater Merit Badge pamphlets, Stec also led the development of BSA’s Stand Up Paddleboarding Award. Stec clearly understands what works for youngsters.

Judge Chuck Hawley, a marine industry consultant, speaker on boating safety, and former “West Marine Advisor” with 40,000 miles of open ocean sailing experience on both coasts is keenly on the lookout for better jacket ideas for offshore sailors. Hawley has sailed everything from 24-foot ultralights to the 125-foot catamaran Playstation and his expertise in the product development pipeline and the retail environment is helping the group make their decisions.

Joe Fogarty, VP at Image Base, a business communications company in Chicago, is also a judge. Joe’s insight on the boating consumer is adding an important voice to the judging mix. Fogarty has been knee-deep in the NMMA Discover Boating program for many years, producing videos that have contributed to driving over one million visitors to boatbuilder websites in 2013.

The fifth competition judge is Frank Solazzo, a Team Leader with Leland Limited which supplies life jacket manufacturers with the small, high pressure gas filled cylinders used for inflatable life jackets – arguably the most comfortable jackets on the market today. With his hectic schedule of trade shows and sales visits, Frank adds an important supplier voice, helping the group imagine what’s possible.

What these five judges decide may have a long-term impact on increasing voluntary wearing of life jackets and saving lives. “We know this is a whole new era of innovation and it is exciting to be a part of it,” added Hawley. A short video about the competition is available at: http://youtu.be/wSfdANt_lGU. Winners will be announced in September at the International Boat Builders Exhibition and Conference in Louisville, KY.