The California Constitution provides a $7,000 reduction in the taxable value for a qualifying owner-occupied home. The home must have been the principal place of residence of the owner on the lien date, January 1st. To claim the exemption, the homeowner must make a one-time filing of a simple form with the county assessor where the property is located. The claim form, BOE-266, Claim for Homeowners' Property Tax Exemption, is available from the county assessor.
A person filing for the first time on a property may file anytime after the property or claimant becomes eligible, but no later than February 15 to receive the full exemption for that year.
In our discussion with the Alameda County Tax Assessor we confirmed that this law does apply to a person living full time on a boat providing it is a legal domicile.
To start the process, find a copy of the last Property Tax bill which should have your account number on it.
Call the county tax assessor office and ask for the form 266. You will provide them with your account number and they will send the form to you.
Below is an example of the form you need. And here are the phone numbers for the County Tax Assessors in the Bay Area:
Alameda County: (510) 272-3787
San Francisco County: (415) 554-5596
Contra Costa County: (925) 313-7400
Sonoma County: (707) 565-1888
Marin County: (415) 473-7215
Santa Clara County: (408) 299-5500
San Mateo County: (650) 363-4142
Napa County: (707) 253-4466
A person filing for the first time on a property may file anytime after the property or claimant becomes eligible, but no later than February 15 to receive the full exemption for that year.
In our discussion with the Alameda County Tax Assessor we confirmed that this law does apply to a person living full time on a boat providing it is a legal domicile.
To start the process, find a copy of the last Property Tax bill which should have your account number on it.
Call the county tax assessor office and ask for the form 266. You will provide them with your account number and they will send the form to you.
Below is an example of the form you need. And here are the phone numbers for the County Tax Assessors in the Bay Area:
Alameda County: (510) 272-3787
San Francisco County: (415) 554-5596
Contra Costa County: (925) 313-7400
Sonoma County: (707) 565-1888
Marin County: (415) 473-7215
Santa Clara County: (408) 299-5500
San Mateo County: (650) 363-4142
Napa County: (707) 253-4466
It's never too early to start planning!
I asked Nick Tarlson, CPA and shipmate who specializes in tax aspects of boat ownership if he had any year end tax planning ideas, and he answered my question with a
question: When is a boat not a boat?
The answer, when it is a:
• Dwelling unit, so the vacation home rules might reduce your ability to deduct costs in excess of your charter receipts, or a
• Personal residence, so you can deduct the mortgage interest as on a second home, or a
• Rental property, if your average rental period is more than seven days, so your deductions are limited to receipts, or a
• Hobby, because you cannot show that you intended to make a profit, or a
• BUSINESS, because you can show a profit motive, material participation and the other things which make your boat a business and the costs fully deductible against other income on your tax return.
This is the time of year to make sure your ducks are lined up so you can get the most favorable tax treatment possible on your boating costs. You should run a year to date report and make sure there are no surprises and that you will end up where you expected to. Check your material participation log to make sure you have your minimum 100 hours in. If not, you might still have time to get them in in the last 30 days. Nick and his crew can make sure you have the documentation to substantiate your deductions for boat ownership and operation. If you just recently purchased our boat, it is especially important that you have it structured to be placed in service and eligible for any by the end of the year. The Section 179 deduction is now permanent at the $500,000 level, providing a huge incentive for investment in small business property, including yacht charter activities.
Nick Tarlson is a CPA and licensed captain with offices in San Francisco and Point Richmond. He represents dozen of yacht owners worldwide and represents them in their tax and financial planning. He can be reached at nick@tarlson.com or 415-956-5700.
I asked Nick Tarlson, CPA and shipmate who specializes in tax aspects of boat ownership if he had any year end tax planning ideas, and he answered my question with a
question: When is a boat not a boat?
The answer, when it is a:
• Dwelling unit, so the vacation home rules might reduce your ability to deduct costs in excess of your charter receipts, or a
• Personal residence, so you can deduct the mortgage interest as on a second home, or a
• Rental property, if your average rental period is more than seven days, so your deductions are limited to receipts, or a
• Hobby, because you cannot show that you intended to make a profit, or a
• BUSINESS, because you can show a profit motive, material participation and the other things which make your boat a business and the costs fully deductible against other income on your tax return.
This is the time of year to make sure your ducks are lined up so you can get the most favorable tax treatment possible on your boating costs. You should run a year to date report and make sure there are no surprises and that you will end up where you expected to. Check your material participation log to make sure you have your minimum 100 hours in. If not, you might still have time to get them in in the last 30 days. Nick and his crew can make sure you have the documentation to substantiate your deductions for boat ownership and operation. If you just recently purchased our boat, it is especially important that you have it structured to be placed in service and eligible for any by the end of the year. The Section 179 deduction is now permanent at the $500,000 level, providing a huge incentive for investment in small business property, including yacht charter activities.
Nick Tarlson is a CPA and licensed captain with offices in San Francisco and Point Richmond. He represents dozen of yacht owners worldwide and represents them in their tax and financial planning. He can be reached at nick@tarlson.com or 415-956-5700.
BOATER BEWARE SAYS COAST GUARD ALASKA!
New England Marine Title has been aware of and warning clients about online documentation companies that exploit boaters by leading them to believe they are on the official Coast Guard website and charging service fees not commensurate with service provided. Click on the picture above to read the article.
Please read and share! We first published this on our Facebook page, remember to like us on Facebook and we will keep you up to speed on other topics relevant to your boating interests.
New England Marine Title has been aware of and warning clients about online documentation companies that exploit boaters by leading them to believe they are on the official Coast Guard website and charging service fees not commensurate with service provided. Click on the picture above to read the article.
Please read and share! We first published this on our Facebook page, remember to like us on Facebook and we will keep you up to speed on other topics relevant to your boating interests.
In August, my fiancé and 1 year old daughter flew up to British Columbia to meet my parents who were spending the summer cruising in Desolation Sound. My dad, Duncan, and Stepmom, Jan, have been going up to that area on their boat for years. Being that we were based out of Seattle, when I was a kid we did a lot of cruising in the San Juan Islands but this was the first time I had joined them that far north. With my fiancé and daughter in tow this trip was special, and hopefully the first of many.
We spent 8 days cruising from anchorage to anchorage, going ashore only briefly for hiking to a secluded lake for a swim or to pick Malaspina Oysters right off the beach for dinner. The Pacific Northwest has a unique beauty and our surroundings on this trip were majestically beautiful to say the least.
I asked my parents a few questions about their experience
cruising Desolation Sound and about why they love it as boaters: Scroll down to read more and see more photos from our trip!
We have spoken with a number of people this year who have experienced losses due to emails being hacked, directing the person attempting to wire funds to a different account.
The hacker, of each of the 3 victims, copied the seller or brokers email page directing the buyer to forward the wired funds to a different account because the established account was being audited. The unsuspecting buyer, recognizing the look and feel of the seller/broker’s email, followed the instructions blindly transferring the money to the hackers account. The amounts lost were $3,000, $15,000 and $300,000.
Lessons heard were:
1. get wire instructions in writing in advance,
2. confirm with parties involved via phone
3. make no last-minute changes.
The hacker, of each of the 3 victims, copied the seller or brokers email page directing the buyer to forward the wired funds to a different account because the established account was being audited. The unsuspecting buyer, recognizing the look and feel of the seller/broker’s email, followed the instructions blindly transferring the money to the hackers account. The amounts lost were $3,000, $15,000 and $300,000.
Lessons heard were:
1. get wire instructions in writing in advance,
2. confirm with parties involved via phone
3. make no last-minute changes.
