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Tax Law (Questions About Taxes)/boat slip for nightly rental condo


John: Our lake condo is used solely for nightly rentals. Other owners have formed a corporation for a new boat dock to be used strictly by nightly renters as outlined under the Army Corps permit.  We can buy a share of the Corporation that gives us a boat slip that will be tied only to our condo for our renters use.  The buy-in cost is considerable but it will boost our rentals since it also allows our guests use of the swim deck on the dock.  How would we deduct the costs?


Thanks for your question.

The buy-in would not be deductible, as it is technically an investment in a corporation. Upon sale of the shares in the corporation you would realize a profit or loss on your investment.

Any ongoing costs that you pay directly would be deductible but the more likely scenario would be that the corporation would pay the costs.  Any assessments you pay for maintenance or repairs would be deductible.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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