Your Yacht as A Business Benefits

How Charter Yacht Ownership Substantially Lowers Ownership Costs

YOUR YACHT AS A BUSINESS™ PROGRAM:  Our program, along with our decades of experience, help you understand how to successfully set up and operate your yacht in a charter program.  You can place boats either locally or at any international destination.   This business provides a way to offset the costs of ownership and derive substantial tax benefits. You can manage the yacht charter side of the business yourself, or we can help place your yacht with a management company. It’s not difficult, but does require specific activities on your part and documentation to qualify for full benefits.

THE BENEFITS:  The tax laws that benefit you are the same ones that every small business benefits from as long as you are operating it as an active participation business. You will be able to write off all your boat expenses and depreciate your working asset (boat).

EDUCATE YOURSELF:  In our Your Yacht As A Business™ monthly webinar, we explore the tax benefits, business set up steps and more.  There are specific requirements and procedures that must be in place to meet the standard of actively operating a business for profit. Guaranteed income programs do not qualify for operating your boat as a business and fail the IRS test. We go through your obligations and the pitfalls of not properly setting up the business. You’ll leave the webinar knowing your next steps and be equipped with all the information you need for a successful charter yacht business.

There is a lot of misinformation out there and claims about running your yacht as a business.  Our webinar will give you enough information to make an informed decision.

OUR EXPERTISE:  For over 30 years we’ve been helping buyers successfully set their boat up as a business.  They enjoy all the benefits of owning a yacht for charter and for personal enjoyment.  We have many placement options from local to international fleets, skippered or bareboat.  We have a great team of experts who can help you set up your yacht charter business to fit both your financial and lifestyle goals. Placement opportunities are available in our local skippered charter fleet, local sailing schools and international fleets.

Lagoon 42 cockpit

There are so many benefits to charter yacht ownership, you owe it to yourself to explore.

How Charter Yacht Ownership Works

The business is structured like any other for profit business and enjoys the same tax benefits, plus a few more. To take advantage of the tax benefits, the business is operated as an active participation business. You can manage your own rental program or place the yacht in a charter company to be marketed and assist with management.

To realize all the tax advantages there are simple tax rules and operating requirements that need to be followed. It’s especially important to know your obligations for meeting the IRS standards as an active participation business.

The benefits are great when you operate your yacht as a business™. You can deduct all the costs of ownership including berthing, maintenance, loan interest, insurance and all related expenses. When a business buys new equipment, the purchase price can be depreciated using the MACRS schedule depreciation schedule. You can also take advantage of the Section 179 deduction in the year of your purchase which gives you even more write-offs for greater savings.

There are lots of misconceptions about the requirements to operate a charter yacht business.You will find clarification at our Savvy Buyer’s Guide webinar,  Your Yacht As A Business™.  Setting up your business is easy, and we have a detailed program to help you get started and make sure you’re doing all the things necessary to have a successful experience of ownership, operation and management.

Is Charter Yacht Ownership Right For You?

If you want to own a yacht and can benefit from the tax deductions, you’re a good candidate.  If you’re looking for a way to offset the cost of ownership and are comfortable with other people using your boat, this could be an excellent choice. In either case, you have to be comfortable with your yacht being used by others knowing that you will have increased wear and tear and mishaps. Maintaining a business mindset over a solely private use mindset is key to your sanity and success.

If long range cruising is in your plans, placement in one of our international charter bases is an excellent consideration.  You can get your long term plans in place now at lower costs and with many personal benefits that include the use of yachts around the world, vacation programs, and substantial income generating programs. We partner with the world’s largest companies and can offer you multiple brands, including Beneteau, Lagoon, Fontaine Pajot, Bali and Dufour. 

Reviewing the considerations below will help determine your ability to be comfortable with yacht charter ownership.

Charter Yacht Ownership Considerations:

  • Is yacht ownership a personal goal of yours?
  • Can you use the tax benefits?
  • Will the wear and tear and others using your boat bother you?
  • What is your risk tolerance?
  • Do you want to travel to use your yacht vs. having your yacht local for more regular use?
  • Can you take advantage of  vacation exchange programs?
  • Are you interested in committing time to the yacht’s management vs. a more hands-off experience? (not all hands off!)

We’ve helped many people successfully operate their yachts as a business in California, Europe and the Caribbean. The programs we offer are the safest financially and give you the best revenue options either locally or internationally.

With us, you have a choice of placement areas – either local or international in 7 different countries or localities on the world.. We help you place your yacht in local sailing schools, bareboat charter fleets, in our Northern California skippered charter fleet or club, and internationally.