Can I Deduct a Boat Used for Business?

Using a boat for business purposes is possible, but the IRS looks at these claims very carefully because of how often they are abused. If your boat is genuinely used in your business, such as a charter fishing operation, a water taxi service, or marine research, the expenses may be deductible. Entertainment-related uses, such as taking clients fishing or hosting business parties on the boat, are generally no longer deductible since entertainment expenses were eliminated in 2017. Trying to deduct a personal boat by claiming it doubles as a floating office is a common red flag for the IRS. Documentation of actual business use and revenue generated from the boat is essential to defend any deduction.