Maximize Savings and Tax Benefits When You Buy any New Boat
from LYS.
Many boat owners overlook a very simple way to get a new boat and at the same time write off most of your costs of ownership. It’s called Section 179 100% bonus depreciation. Under current law, 100% bonus depreciation has been made permanent for qualifying property (and that includes boats acquired and placed in service as a business after January 19, 2025).
Write off your new Boat By placing this vessel into a business, such as a charter operation that you manage personally or through a local charter company, you may qualify for Section 179 benefits. For 2026, you can also take advantage of 100% Bonus Depreciation, subject to applicable conditions. What the bonus depreciation does is if your boat is a business it will allow you to expense the full cost of eligible assets in the year they are placed in service indefinitely under the current law.
Technically, any new boat we have, power or sail would qualify for the Section 179 benefits. Right now there is a huge shortage of later model or new sail and power boats in the Clear Lake area for charter. Our satellite office in Key West, Florida is also affiliated with a Blue Ocean Yacht Charters which is also seeking boats into their fleet.
Other good reasons to consider putting your boat into charter.
1) Your expenses of ownership generally are also partially offset by charter income.
a. Slip and insurance
b. Cleaning and upkeep
c. And most of the maintenance is taken care of.
2) You can still use your boat anytime just block out the dates you need, keeping in mind it has to be in charter at least 50% of the time.
3) A boat in a US charter company doesn’t get the amount of usage that a charter boat in the islands does. Probably one quarter of it.
4) Let your boat help pay for itself while you are still working full time and as you get closer to retirement, phase it out of charter and go cruising.
Sounds interesting? Email lnfo@LittleYachtSales.com for more information.
*LYS does not intend to give tax advice. Please consult your tax attorney, accountant, or CPA.
