topic Capitol gains from boat sale in Other financial discussions

Capitol gains from boat sale

Kenpainter — Fri, 21 Aug 2020 02:25:46 GMT

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:)

Re: Capitol gains from boat sale

Anonymous — Fri, 21 Aug 2020 05:20:48 GMT

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.

Re: Capitol gains from boat sale

Anonymous_ — Fri, 21 Aug 2020 13:23:25 GMT

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.

Re: Capitol gains from boat sale

Kenpainter — Sun, 23 Aug 2020 21:04:57 GMT

Thanks, my 30’ sailboat has kitchen, bathroom with shower/toilet, and separate bathroom. Basically a tiny home on the water.

Re: Capitol gains from boat sale

Kenpainter — Sun, 23 Aug 2020 21:07:11 GMT

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

Re: Capitol gains from boat sale

Anonymous_ — Sun, 23 Aug 2020 22:00:27 GMT

@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.