100% Bonus Depreciation for Yacht Purchases
Maximize your investment with strategic tax benefits available to US business owners purchasing new yachts for charter operations
Understanding Bonus Depreciation
A powerful tax strategy that can significantly reduce the cost of yacht ownership for qualifying businesses
What is Bonus Depreciation?
Bonus depreciation is a tax incentive that allows businesses to immediately deduct a large percentage of the purchase price of eligible business assets, including yachts used for charter operations. Under current US tax law, qualifying assets may be eligible for 100% bonus depreciation in the first year of service.
For yacht buyers, this means potentially deducting the entire purchase price of a new catamaran in the year it enters charter service, creating substantial tax savings and improving cash flow for your business.
Immediate Tax Savings
Deduct up to 100% of the yacht's purchase price in the first year, potentially saving hundreds of thousands in federal taxes
Business Asset
Your yacht becomes a legitimate business asset generating charter income while providing personal use benefits
Improved Cash Flow
Reduce your tax liability in the purchase year, freeing up capital for other business investments
Qualification Requirements
Step-by-step guide to determining if your yacht purchase qualifies for bonus depreciation
Business Use Requirement
The yacht must be used predominantly (more than 50%) for qualified business purposes. Charter operations through an established management company like Moorings Charter Company (MCC) clearly satisfy this requirement.
Qualifying Business Activities:
- Charter operations managed by professional charter companies
- Corporate events and business entertainment (documented)
- Employee incentive programs and business retreats
- Client entertainment and relationship building
Asset Purchase Requirement
The yacht must be purchased (not leased) and placed into active charter or business service. Both new and pre-owned yachts can qualify for bonus depreciation when used for legitimate business purposes.
Qualifies
- • New Bali catamarans
- • Pre-owned/brokerage yachts
- • Purchased assets (not leased)
Does Not Qualify
- • Personal/recreational use only
- • Not placed in active charter service
- • Cannot demonstrate >50% business use
Business Structure
The yacht must be purchased and owned by a qualifying business entity that pays US federal income taxes. Common structures include LLCs, S-Corporations, C-Corporations, and sole proprietorships.
Recommended Entity Structures:
Single-Member LLC
Simple structure, pass-through taxation, suitable for individual owners
Multi-Member LLC
Partnership taxation, good for family or partner ownership
S-Corporation or C-Corporation
Corporate structure with specific tax advantages
Placed in Service Timeline
The yacht must be placed in service (ready and available for charter) within the same tax year you wish to claim the deduction. Proper documentation of commissioning and charter availability is essential.
Critical Documentation:
- Delivery and commissioning certificates from VIYB
- Charter management agreement with MCC
- Proof of charter availability (MCC listing confirmation)
- Insurance and registration documents
Documentation & Record Keeping
Meticulous records are essential to support your depreciation claim. The IRS may request documentation during audits, so maintain comprehensive files for at least 7 years.
Required Records:
- • Purchase agreement & invoice
- • Financing documents
- • Charter management contract
- • Delivery & commissioning records
- • Insurance policies
- • Registration documents
Ongoing Documentation:
- • Monthly charter revenue reports
- • Business use logs
- • Maintenance records
- • Operating expense receipts
- • Personal vs. business use tracking
- • Annual MCC statements
Real-World Example
See how bonus depreciation works with a new Bali 4.8 catamaran in the BVI charter program
Case Study: Bali 4.8
Tax Benefit Calculation
Year 1 - Tax Deductions
Annual Charter Revenue (Estimated)
Total First-Year Benefit
This example demonstrates how tax savings can exceed your down payment in year one, effectively making the yacht "cash flow positive" from a tax perspective.
Additional Considerations
- Personal use of 4-6 weeks annually included in MCC program
- All maintenance, cleaning, and crew managed by MCC
- Potential for yacht appreciation in strong market conditions
- 3-5 year guaranteed buyback programs may be available
- Section 179 deduction may be available for additional savings
* This is a hypothetical example for educational purposes. Actual tax benefits, charter revenue, and expenses will vary. Consult with your tax advisor and CPA for projections based on your specific situation.
Full-Service Support from VIYB & MCC
We handle every aspect of your purchase, delivery, and charter management so you can focus on the tax benefits and enjoying your investment
VIYB Services
New Bali Catamaran Sales
Factory-direct pricing as authorized Bali dealer
Caribbean Delivery & Commissioning
Direct shipping to BVI with full systems testing
Entity Formation Guidance
Referrals to marine tax attorneys and CPAs
Financing Coordination
Connections to marine lending specialists
Documentation Support
All purchase and delivery records for tax filing
Owner Orientation
Comprehensive training on all systems and operations
MCC Charter Management
Professional Charter Operations
Industry-leading booking and guest services
Complete Maintenance Program
Scheduled servicing and repairs included
Marketing & Reservations
Global reach through Moorings network
Tax Documentation
Detailed monthly and annual revenue statements
Personal Use Scheduling
4-8 weeks annually for owner enjoyment
Insurance & Registration
Comprehensive coverage and compliance management
The Complete Partnership
VIYB and MCC work together to ensure your yacht is properly documented, professionally managed, and positioned to maximize both charter income and tax benefits.
Tax Documentation
Complete records for IRS compliance and audit defense
Professional Standards
Industry best practices and regulatory compliance
Proven Track Record
Decades of experience in charter ownership programs
Ready to Explore Your Tax Benefits?
Schedule a confidential consultation with our team to discuss how bonus depreciation can work for your specific situation
What We'll Cover
- Your specific tax situation and potential benefits
- Available Bali models and pricing
- Charter revenue projections for BVI market
- Entity formation and financing options
- MCC program details and owner benefits
- Timeline from purchase to charter availability
Next Steps
- 1Schedule your complimentary consultation call
- 2Receive personalized tax benefit projections
- 3Get referrals to specialized tax advisors
- 4Select your Bali catamaran and customize
- 5Finalize entity formation and financing
- 6Complete purchase and BVI delivery
Or call us directly at +1 786 246 0809
Additional Resources
Tax Guide Download
Comprehensive PDF guide covering bonus depreciation, Section 179, and charter ownership tax strategies
Download GuideROI Calculator
Interactive tool to estimate charter income, expenses, and potential tax savings for your situation
Use CalculatorCPA Network
Get connected with CPAs and tax attorneys who specialize in marine tax law and charter ownership
Request Referral