If you’ve been on the fence about acquiring a yacht, here’s some timely and potentially game-changing news. The One Big Beautiful Bill Act, signed into law on July 4, 2025, reinstates 100% bonus depreciation for qualifying business assets purchased after January 19, 2025.
Why This Matters for Yacht Owners
Assets used in active business like a yacht in a professionally managed charter fleet can be fully expensed in the first year. That can translate into massive tax savings.
Key Requirements:
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- More than 50% business use (e.g., charter operations).
- Proper documentation of business vs. personal use.
- Legitimate charter activity as the IRS scrutinizes luxury assets closely.
Real-World Impact:
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- A $3 million yacht with 70% charter usage could see $2.1 million depreciated immediately.
- A $2 million purchase could reduce tax liability by $700,000+, cutting the effective after-tax cost to about $1.3 million.
Final Thoughts
The combination of 100% first-year write-off and charter income can turn yacht ownership into a smart, tax-savvy investment if structured properly.
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- Act quickly: Only acquisitions after January 19, 2025 qualify.
- Ensure business legitimacy: Properly managed chartering is key.
- Keep meticulous records: Essential for IRS compliance.
- Work with a qualified CPA: Every ownership and tax situation is unique.
Disclaimer
Veteran Yacht Sales (VYS) is not a tax advisor. The information provided here is for educational and informational purposes only and should not be construed as tax, legal, or financial advice. Prospective yacht owners should consult with a qualified CPA or tax professional to determine eligibility and ensure compliance with IRS requirements.
