I have a friend considering buying a houseboat and living on it. He wants to use it to film his life on the boat that will be his business, it will be a youtube business where he films his life on the boat. For the IRS to consider that a business, is having the youtube channel enough? Does he need to sell T-Shirts, coffee mugs etc.?
If it is considered a business, the IRS lets him use 179 or Bonus depreciation when he buys it according to this link:
https://www.fuoco.cpa/keep-your-boat-afloat-with-tax-breaks/
In addition, it will be his primary residence. As his primary residence, this link informed me that he can write off the mortgage interest and is eligible for the married filing jointly $500,000 tax exclusion on gain on sale of primary residence:
https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/home/can-my-boat-or-rv-be-claimed-as-a....
So, now I am a little confused. If you treat the entire boat as a 179 writeoff when you buy it, are you double dipping if you then claim primary residence exclusion when you sell it? How does the home office deduction fit in to all of this? Is the entire houseboat his home office? Can he take a home office deduction if he already wrote it off in the first year as a business expense? Can you write off business repair expenses (or what about repairs that extend the life of the boat?)
I guess I am just really confused how the houseboat is treated? Do you pick it as a business 179 expense or treat it as a primary residence and use the entire boat as a home office (or can you do both).
