Depreciation on boat for Fishing Guide Service

[nwtaxlady]

Client started a Fishing Guide Service business. He bought a brand new fishing boat and he doesn't want to take all depreciation in one year, he wants to have the deduction over the years. How many years would you depreciate the $66,000 boat using straight line method?

I also had him kept track of his boat hours, business vs. personal and business hours were 289 hours and personal was 23 hours. So does that mean take 93% business on depreciation. Would I just enter in the hours just like you would for mileage? He has gas receipts for gas used in the boat. So this would be first year. How would I do this for first year and then next year?

[TaxGuyBill]

Unless you can find some specific category to put it in, unclassified assets are usually depreciated over 7 years.

https://www.irs.gov/pub/irs-pdf/p946.pdf#page=96

Yes, I would use 93% business usage (or whatever the math is based on the hours). I doubt if your program has a place to enter hours for an asset, but it will ask for the business percentage, and you just enter your manual calculation of 93%.

First year and next year would be pretty much the same. Just alter the business percentage for next year to whatever it will be.