Podcasts & RSS Feeds
Most Active Stories
- This ballot proposal is critical to Michigan's economy, but most people won't bother to vote on it
- What explains Michigan's large Arab American community?
- Some think their immigrant ancestors were the last that should be allowed in the U.S.
- Michigan Republican Party's tactics remind me of Watergate, because both were unnecessary
- Michigan's campaign for governor gets weird as Republicans deploy spyglasses
Thu May 5, 2011
Yachts shouldn't be eligible for tax write-off, says Michigan Congressman
Michigan Congressman Gary Peters wants to close a loophole that allows people to write off the interest they pay on their yacht loans.
Peters says current law allows people to deduct the interest on two residences.
"But the way the deduction is written, it’s anything that has a toilet, a kitchen and bedding, so yachts qualify, and so you’ll find that many people write off the interest in financing their yachts."
Peters says the loophole cost the U.S. Treasury a billion dollars in 2004, the last time the Congressional Budget Office examined the issue.
Peters says if someone's yacht is actually their principal residence, they will still be able to deduct interest payments on the boat loan from their taxes.
He says closing the loophole will help shrink the deficit, and make the tax code more fair.