Internal Revenue Code (IRC) section 163 (h)(2) states that a taxpayer may deduct any qualified interest on a qualified residence. Qualified residences are defined as a principal residence (e.g., a primary home) and one other residence (including second homes) owned by the taxpayer for the purpose of deductibility for the tax year. IRC section 163(h)(3) defines qualified residence interest as any interest paid or accrued during the tax year on acquisition or home equity indebtedness with respect to any qualified residence of the taxpayer.
Boat Loan Sources – Find a Specialist
Despite recent changes in credit markets, a network of lenders stand ready to assist boat buyers finance their purchases. Many lenders recognize the fact that boat buyers are excellent loan clients, and have maintained offerings for boat loans, along with serving the more traditional auto and real estate markets. Many of these boat lender specialists are members of the National Marine Bankers Association (NMBA). In any active boating market, there should be several sources for boat loans. It's a good idea to compare rates and terms offered by various loan sources to determine the financing best suited for the intended purchase.
Lenders include:
If your boat qualifies as a "second home" (see section below on the tax deductibility of interest on boat loans) there may be advantages to financing your boat purchase instead of paying cash or liquidating assets to do so. By maintaining cash or assets/securities, investment earnings may exceed the cost of marine financing.
You can use our loan calculator to determine a loan amount that will fit your budget or to calculate monthly payments for a specified loan amount.
The boat manufacturing and dealer community maintains a comprehensive web site for those thinking about buying a boat under the banner Discover Boating (create link to discoverboating.com). There you will find topics including Choosing a Boat, Types of Boats, Boat Buying, Boating Access, Learning to Boat, Trailering, and much more. There are also listings of boating events across the country where interested parties can go to "try it out," find the experts, or simply spend an afternoon near or on the water.
If fishing is your primary interest in being on water, visit Take Me Fishing (create link to takemefishing.org) designed to include all the information beginning anglers and boaters need to find out how and where to boat and fish. Visitors can learn basics such as: where to obtain a fishing license; how to select the appropriate baits and lures; how to tie a fishing knot; tips on casting; how to identify the catch; how to register a boat; and a guide to boat buying.
Get more information about buying your dream boat here: Discoverboating.com
Boat buyers have choices when it comes to paying for their purchase, and financing is both an affordable and sensible option. But it’s just as important to know where to go for a boat loan. The National Marine Bankers Association (NMBA) is a national organization of marine lending specialists who understand the boat business. NMBA members -- national and local banks, financial service firms and some credit unions -- offer competitive financing simply because they have made boat loans an important part of their business. And because it’s their business, many marine dealers and brokers work with NMBA lenders daily to help put boaters on the water.