News

Crewmember Verification Foreign Flag

By: Tom Andrews, CPA As a crewmember on a foreign flagged vessel you are probably being paid in one of three ways: You are issued a W-2 with taxes withheld. You receive a 1099 at the end of the year. The employer is simply depositing funds to your bank account without provided a W-2 or […]

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Trump Tax Plan

By: Tom Andrews, CPA Now that a republican president has been elected to office along with a majority republican congress, tax reform is almost certain.   Since the election I have had a handful of clients contact me to inquire how tax reform might affect them.  At this time I do not have an answer, while […]

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IRS Phone Scam Leaves Yacht Crew Vulnerable

By: Tom Andrews, CPA The Internal Revenue Service has received almost 90,000 complaints from tax payers who have received unsolicited calls from individuals demanding payment while fraudulently claiming to be from the IRS.  This can be especially troublesome to yacht crewmembers most of whom  travel frequently. Many crewmembers are away from home for extended periods […]

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Social Media and Your Taxes

By Tom Andrews, CPA Several years ago I wrote a column that explored an interested development in IRS audit techniques.  As technology has improved the IRS began researching the social the social media accounts of tax payers.  The IRS insists that it is only using information that is public so as long as your privacy […]

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Are My Yacht Club Dues a Deduction

By Tom Andrews, CPA Deducting membership dues has always been a highly scrutinized deduction by the IRS, club memberships are naturally a target because they are considered an entertainment expense and these types of expenses have a strict supporting documentation standard with the Internal Revenue Service. When it comes to membership dues the IRS distinguishes […]

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Crew Vehicle and Automobile Expenses

by Tom Andrews, CPA Many yacht crew members will use their personal vehicle for vessel / yacht business.  In many cases they are not reimbursed by the vessel and simply use the vehicle without regard for the potential tax benefits of an auto deduction. If a vehicle is used exclusively for your business, then generally […]

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Understanding Your Compensation Structure

by: Tom Andrews, CPA As we approach the midway point of tax year 2016 it is important for crewmembers to have an understanding as to how the vessel views the services you provide.   Many times the crewmember and the owner  will define their own relationship differently.  Sometimes crewmembers and owners will come to an agreement […]

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Affordable Care Act and What This Means to Yacht Crewmembers

by Tom Andrews, CPA The Patient Protection and affordable Care act commonly referred to as the Affordable Care Act or “Obama Care” was signed into law in 2010, the major provisions of this law will be phased in starting January 2014.  There has been confusion among many yacht crewmembers as to how this law will […]

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2016 Foreign Earned Income Exclusion Update

By Tom Andrews, CPA The FEIE (foreign earned income exclusion) is so frequently asked about I write an update column every year. Unfortunately the most common misconception about the FEIE is that if an American lives outside the United States for more than 183 days they automatically qualify.  I believe this myth is perpetuated by […]

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SALT (State and Local Tax)

By Tom Andrews, CPA While we regularly focus on federal income taxes it is important to keep in mind that SALT (state and local taxes) may have just as much of an impact on yacht crew as do the federal taxes. In my experience the state and local taxing authorities can have more aggressive enforcement […]

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