Headquartered in Miami Beach, Florida, The Advantaged ranks among one of the oldest and most well-respected luxury yacht charter companies in the state. Having proudly served the local Miami and Fort Lauderdale community for over a decade, The Advantaged brings together a unique set of experience, talent, and exceptional service to create memorable experiences their charter guests and yacht buyers won’t soon forget.
This season The Advantage highlights why now is the best time for savvy business owners to buy a Yacht, leveraging Federal Tax laws to take advantage of hefty incentives and serious reductions in tax liabilities.
Tax Laws Continue to Favor Yacht Ownership and Chartering
Always looking for ways to better serve its clientele and provide more value, The Advantaged Yacht Charters and Sales discusses the many ways its clients take advantage of tax benefits associated with yacht charters or ownership.
According to The Advantaged, the key to understanding the scope of tax benefits that may apply to yacht ownership is that yachts may fall under the same tax rules that allow other businesses to benefit from the purchase of business equipment.
When a yacht is placed in a ‘charter management program’, that vessel can now be classified as a business asset vs. a personal asset. In some cases, when combined with other tax incentives and strategies, this may reduce the costs of purchasing a yacht by up to 50%.
Why 2017 Tax Laws Changed the Game for Yacht Ownership Through 2022
In 2017, the Tax Cuts and Jobs Act (TCJA) was passed. This broad tax reform added new and exciting provisions that yacht owners who used their vessel for legitimate business purposes were able to take advantage of.
As part of the new bill, amendments were made to specific IRS codes applicable to expenses, deductions and depreciation through 2022. As the deadline for these benefits approaches, The Advantaged contends that there has never been a better time to discuss yacht and boat tax incentives with a tax advisor.
Specific Tax Incentives for Yacht Ownership and Chartering
Bonus Depreciation: A major advantage of TCJA updates was that it increased the bonus depreciation percentage allowed under the law from 50% to 100% for any qualified property that was purchased and put into service after September 27, 2017, and put into use before January 1, 2023. This means that up to 100% of the total purchase price can be written off as ‘bonus depreciation’ in the tax year it was purchased if certain requirements are met.
Deductions: Under certain circumstances, a buyer of a yacht may also be able to deduct sales taxes at the local and state level. For yachts classified as a ‘second home’, updated TCJA rules allow for the potential to deduct interest on any loans on the yacht (similar to mortgage interest deductions). Prior rules apply.
Expenses: For those owners who use their yacht 50% of the time (or more) for business purposes, they may be able to deduct costs associated with maintenance, supplies, mooring fees, fuel, storage, insurance and repairs.
This information is not considered to be official tax advice, and is meant to highlight the potential tax incentives that may be applicable to yacht ownership or chartering. The Advantaged advises everyone to consult with a licensed tax advisor to find out which tax incentives they qualify for and how to maximize those with their next yacht purchase.
About The Advantaged
Founded in 2006, The Advantaged is South Florida’s premier yacht excursion, charter and brokering company. The Advantaged serves a broad range of clients interested in yachting for special events, corporate parties, bachelor/bachelorette parties, and romantic outings.
As an elite charter company, The Advantaged strives to live up to the highest standards in every aspect of their business, providing clients with an unforgettable experience. Their stunning fleet boasts over 30 cruisers, yachts, mega yachts, and sailboats.
Those interested in learning more about the newly released membership plans or about booking a charter are encouraged to reach out via their official website below or by calling 305-358-0745 today.
Company Name: The Advantaged
Contact Person: Nancy Yanez
Email: Send Email
Address:1800 Purdy Ave Marina suite three
City: Miami Beach
Country: United States