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View Full Version : Deducting State Gas Tax for Boat Use


BuoyChaser
04-18-2006, 02:44 PM
just was told by a co-worker that some states allow you to deduct the state tax paid on gasoline you use for your boat, since most of state gas tax goes to road building...guess he heard it on Boston news last night...

http://www.boatus.com/gov/state_boat.htm

M-Funf
04-18-2006, 03:11 PM
Interesting...

I'll have to ask my tax guy if this applies in CA...not that my gas tax will amount to much in the boat, but every penny counts these days...

Ric
04-18-2006, 03:14 PM
I went to the trouble of doing that paperwork once when we added our ski boat fuel usage to our houseboat trip (big bill) and then got lazy when I got a letter from the state needing evidence, so I never got a refund.

east tx skier
04-18-2006, 03:18 PM
Do it. Just save your receipts and write MC boat gas on them. In Texas, it doesn't matter that the tax amount doesn't appear on the receipt. They just want the total number of gallons for the year. After a month or so, you'll get a letter asking for the receipts. After that, it's apparently pretty much the honor system. They've not asked me for receipts since then (but I keep them anyway). With very little usage, I get about $40 back each year. The paperwork is not even a page long.

tommcat
04-18-2006, 03:21 PM
Dont waste your time in MA. i looked into it with my accountant. it's set up to make it far more trouble than it's worth.
you need to keep gas receipts for everything you own for 2 years, even what goes into the lawnmower.
you only get a small portion of the tax back and they charge a usage fee for doing it. the worst part is he said it almost guarantees an audit at some point

bigmac
04-18-2006, 03:46 PM
In Minnesota, it used to be that you could deduct the tax on all non-highway use vehicles. I filled boats, 4wheelers, snowmobiles and motorcycles from a home-storage tanks making the accounting simpler.

Now, a change in the tax code only allows a tax advantage (actually a tax credit) if it's used off-highway for commercial use (ie farming).

BuoyChaser
04-18-2006, 05:10 PM
In Minnesota, it used to be that you could deduct the tax on all non-highway use vehicles. I filled boats, 4wheelers, snowmobiles and motorcycles from a home-storage tanks making the accounting simpler.

Now, a change in the tax code only allows a tax advantage (actually a tax credit) if it's used off-highway for commercial use (ie farming).
we raise sheep, chickens, horses so been looking into getting a tank for farming...have to research out how much of a tax advantage that offers...