Houseboat

[James]

I retired early and collect social security. I can only earn so much per year before my social security benefits are taken away. I own a houseboat and know someone who wants to lease my houseboat to entertain his clients. He also wants me to skipper the boat. I will not be paid anything other than the lease of the boat. My question is what would the tax implications be. Would this be rental income, or is it earnings that will affect my social security?

[Lance Emerson]

Earned Income

The income is earned income. There are two factors, either one of which will establish that the income from the boat is not rental income.

First, if you're the skipper, you're providing a service. That's earned income, no different than if you were paid on a W2. The fact that you're using your property in providing the service doesn't mean it's not income from self-employment. A carpenter can't say he earns his money from renting out his tools. He's earning his money by providing services.

Even if you could pretend that none of the income was from your services, you'll fall into the same category as hotels, etc. If the rental averages 7 days or less, it's not a rental activity.

It will be income from self-employment and will go toward the social security earnings limit.

[Scarecrow]

Houseboat

So did Gilligan and the Skipper turn what was supposed to be a 3 hour tour into a rental activity by going well beyond 7 days?

caw

[Armando Beaujolais]

No Dice

So did Gilligan and the Skipper turn what was supposed to be a 3 hour tour into a rental activity by going well beyond 7 days?

No such luck. There's also a rule that says if the rental is incidental to the service activity, the overall activity is not rental.

The skipper provided continuous and ongoing services by planning a new scheme every day to get the castaways off the desert island and slapping Gilligan with his hat. The fact that the plans always failed does not recharacterize the activity. Intent of the taxpayer is the controlling factor in this situation.

What I could never figure out is if the professor can create a self-powered ham radio out of coconuts and seawater, why couldn't he figure out a way to patch the boat? I guess that would get into the area of research and development costs

[Bees Knees]

Gilligan

If I recall correctly, I believe the pilot episode dealt with that issue. They did try to patch the boat, but Gilligan did something in the end that completely destroyed the boat beyond repair. I think it had something to do with the nails disintegrating or something.

Maybe I am just dreaming, but I seem to recall something like that.

[Scarecrow]

Nails to repair boat

In episode #8 (first season), the professor tries to make nails from ferrous oxide that he found on the island. But his nails are too limp. So Gilligan and Mary Ann try to make tree sap into glue. The glue only works temporarily. Thus, the boat comes flying apart in the end. No more boat.

Sometimes, there is too much information to be found on the internet.

caw

[Armando Beaujolais]

I still think the professor should have been able to figure it out.

[Scarecrow]

Professor

This web site suggests the reason he didn't fix the boat was because he was a communist spy.

http://strivinglife.net/gavin/professorgi.htm

caw

[Bees Knees]

Communist Spy

Crow...

The problem with your communist spy theory is, in episod 70 Gilligan meets his double, who is a soviet spy whose mission is find out what the castaways are up to. The soviet spy Gilligan thinks the cast aways are American spys in an assignment. So why would the soviets send a goofball Gilligan double spy to spy if the professor is already a spy, and a more cabable spy at that?

[Armando Beaujolais]

It's complicated

Haven't you ever heard of a double agent? There is a theory that the Professor was a soviet spy, and Gilligan was an American spy sent to spy on the Professor, but the real Gilligan was really a double agent, and the Soviet Gilligan was also a double agent hired by the Americans to find out if the real Gilligan was a double agent as well.