September 26, 2017
Sometimes boats and aircraft are used for private and commercial purposes. In such cases, the income from their use may be liable for tax.
Boats and aircraft (valued at more than $50,000) become mixed-use assets if they are used privately sometimes, and commercially at other times – and not used at all for 62 days of the tax year.
Income-earning days include time you spend either occupying or using the asset to:
But just taking the craft out for repair, or to fix normal wear and tear, is private use.
Article courtesy of Accerlate