June 11, 2018
Yacht as a Business
Do you have a tax liability for 2018? If so, you have an opportunity to purchase a yacht and place it into charter and offset any tax liability you might have. “Yacht Ownership as a Business” helps you offset a tax liability and lower the cost of owning a new yacht. Once decide on the yacht you want, we refer you to a tax advisor that can help you set up your Yacht as a Business. The IRS Section 179 code allows you to depreciate the value of the boat 100% in year 1 or over 7 years using Bonus Depreciation. It works this way.
Bonus Depreciation: This allows you to depreciate a yacht that with a sale price up to $1M.
Example: If you purchase a $1M yacht, you can depreciate $1M over 7 years. In year 1, $500K (1/2 the sale price) and 1/7 of that remaining $500K amount in year 1. In years 2-7, you can depreciate 1/7 of the $500K annually.
| Yacht Sale Price | Year 1 Depreciation | Year 2 Depreciation | Year 3 Depreciation |
| $1M | $571,400 | $71,400 | $71,400 |
| Year 4 Depreciation | Year 5 Depreciation | Year 6 Depreciation | Year 7 Depreciation |
| $71,400 | $71,400 | $71,400 | $71,400 |
Dream Yacht Charter uses their Performance Management Program to support clients at over 50 bases worldwide. You become an active participant helping to market and charter your yacht working with DYC. You select the charter location from one of our many locations including Annapolis, Caribbean and the Bahamas.
If you would like more information, please feel free to call or email me directly.
Phone: 410-279-6150
Email: brad@dreamyacht.com
Dream Yacht Sales does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.