Interest you pay on your new boat may be deductible as home mortgage interest if the boat has cooking, sleeping and toilet facilities on board. With these features, the boat qualifies as a primary or second home.
If the boat has none of those, if the loan has a home equity line of credit, secured by the primary residence, the interest is deductible as home equity interest.
Otherwise, interest on personal items is not deductible.
Modified on: Sun, 5 Feb, 2017 at 7:07 PM
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