Can You Write Off a Yacht? New Tax Bill Extends Bonus Depreciation Through 2027

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July 04, 2025 Share:

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If you've been considering buying a yacht for charter or business use, now is the perfect time to act. Congress just passed what's being called the "One Big Beautiful Bill," and President Trump is expected to sign it into law on July 4th. One key provision will significantly benefit yacht owners who charter their vessels.

Important note: I'm not a tax professional, and this isn't legal or tax advice. Always consult with your CPA or tax attorney before making any financial decisions.

The new legislation extends 100% bonus depreciation rules through at least 2027. What does this mean for yacht owners? In simple terms, if you buy a yacht and use it for legitimate business purposes (like chartering), you can deduct the full purchase price in the first year.

But here's the catch: your yacht needs to be used for business purposes at least 50% of the time. For most yacht owners, this means putting the boat into a legitimate charter program and keeping detailed records of personal versus business use.

Let's say you purchase a $3 million yacht and place it in a professional charter program:

You use the yacht personally 30% of the time

Charter guests use it the remaining 70% of the time

With proper documentation, you could potentially depreciate 70% of the $3 million purchase price ($2.1 million) in year one

This massive deduction could significantly reduce your taxable income

Critical warning: The IRS scrutinizes luxury assets claimed as business expenses extremely carefully. You absolutely must work with qualified tax professionals and operate your charter business legitimately.

With the extension of 100% bonus depreciation through 2027 now becoming law, there's a clear window of opportunity to make yacht ownership more financially attractive. Some buyers who've been on the fence will find this is the right time to purchase – especially if they were already considering chartering their yacht.

The key is combining your love of boating with smart tax planning. When done correctly, yacht chartering can provide:

Significant tax advantages through depreciation

Income to offset ownership costs

Professional maintenance and care for your vessel

Peace of mind knowing your investment is working for you

If you're interested in exploring how yacht chartering could work for your situation, here's what you need to know:

Choose the right yacht: Not all vessels work well for charter programs

Find a reputable charter company: Professional management is crucial

Maintain detailed records: Documentation is everything with the IRS

Work with tax professionals: This isn't a DIY tax strategy

These tax opportunities don't last forever, and this one just became law. President Trump will sign the bill on July 4, 2025, making these bonus depreciation benefits official. If you've been considering a yacht purchase, now is the time to start exploring your options.

I can help you navigate the yacht selection and charter program side of this equation, and connect you with tax and legal professionals who specialize in these complex arrangements.

Ready to explore how a yacht purchase might work for your situation? Let's have a conversation about your boating goals and how to structure a deal that makes financial sense.

Contact me today to discuss yacht charter opportunities and tax-efficient ownership strategies.

Justin Rowe   7 Listing(S)

Email: [email protected]

Cell: 786-892-2487

Office: 786.246.9873

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