The Nation : Yacht Write-Off Attacked

Sen. John C. Danforth (R-Mo.) introduced a bill to repeal a tax deduction for interest on loans secured by yachts that are claimed as second homes. For several years, federal tax law has allowed a boat or certain recreational vehicles to be claimed as a second home so long as they have cooking, sleeping and toilet facilities. The provision was reinforced by last year’s big tax overhaul, which gradually ended the deduction for consumer interest--including education and car loans--while generally retaining a full write-off for home mortgage interest, including that on a second home. “I am convinced that a tax system that subsidizes yacht ownership over education is flawed at its core,” Danforth said.