Did you know that if you own a boat and rent it out like a house on AirBnB or a Caravan on Camplify then your expenses maybe tax deductible?
Listed & Available to Rent on MatesBoat™ Income Received
Days Available For Rent 365
Days Rented @ $650 p/day 25 $16,250
**You will need to work out how much you use your boat for personal use in this calculation.
Now we work out what our Income and Expenses are:-
Purchase Costs
Boat Purchase Price $150,000
Boat Inspection $500.00 Seaworthy Inspections
Total:- $150,500
Outgoings
Insurance $2,000 R&M Insurance Brokers
Registration $500
Principle & Interest $2,942.32 Monthly 5 years ~ 6.48%
Mooring $13,578.00 Wet Berth St Kilda Marina
Servicing $1,500.00 yearly
Cleaning $500.00
MatesBoat™ Commission $1,950.00
Depreciation $7,500.00 Per Year (Prime Cost Method @ 5% per year see ATO)
Yearly Outgoings:- $62,835.84
Income
Per Rental Av. $650.00
Days Per year 25
Total Income:- $16,250.00
The following is included in your personal income tax assessment:-
Income:- $16,250.00
Expenses:- $62,385.84
Total Loss Inc In Return:- $46,585.84
If you are not renting your boat out on MatesBoat™ then you are paying the full amount of the expenses, miss out on approx. $16,250 in potential rental income and your expenses are not claimable on tax.
N.B you will need to take into consideration your private usage, seek advice from your accountant.
You may be able to claim your internet, mobile phone and home office expenses. As you can see by renting your boat out as an income producing asset you can significantly reduce the cost of ownership. You should discuss this with your Accountant to ensure you receive the maximum tax benefits.
You willl need to make sure your boat is listed on MatesBoat™ and made available for rent along with having a Domestic Commercial Vessel Registration and Insured for this purpose. The ATO has provided some examples here.
It is important that you keep records of all your income and expenses. If you subscribe to Tracket Boat App you can keep all your records in one place. Tracket currently has a 90 day free trial… check out the app here.
Check out the ATO’s information here.
Check out our FAQ’s.
Disclaimer: This is not tax advice and should not be acted upon without seeking advice from a qualified accountant
