Your deduction for the decline in value of a boat that you use or hold may be reduced to the extent that it exceeds the amount of assessable income you derive from using or holding the boat.
Exceptions to that reduction are:
- holding a boat as your trading stock
- using a boat (or holding it) mainly for letting it on hire in the ordinary course of a business that you carry on
- using a boat (or holding it) mainly for transporting the public or goods for payment in the ordinary course of a business that you carry on, or
- using a boat for a purpose that is essential to the efficient conduct of a business that you carry on.