1. Generous Tax Benefits & Income
When you buy a boat for charter, you’re creating a small business. As a business, you receive all the benefits allotted by the IRS for any small businesses. All your ownership expenses become business expenses. The boat also will be depreciated over 10 years. In addition, because you are placing equipment in service you get the additional benefit of being able to take advantage of the Section 179 Deduction, which allows a business to deduct, for the current tax year, the full purchase price of equipment up to $1,000,000. The equipment must be placed into service in the same tax year that the Section 179 deduction is being taken. All expenses of ownership; berthing, maintenance, insurance, property tax, and repairs, become business expenses. (For more detailed information on Section 179 visit www.section179.org.
2. Your Turn-Key Use
Boats in charter programs must be ready to go out at any time. After every use the boat is inspected, cleaned, and repairs made if needed, and it’s ready for use again. The benefit to you is that when you’re ready to boat, your boat is ready. Just step aboard and go. The charter company can even clean up after you.
3. A Yacht That Is Professionally Maintained
A boat in charter use receives regular maintenance, both cosmetically and mechanically, to keep it ready to go and looking good. You can have maintenance scheduled and performed for you through the club or manage it on your own, but the club will help you keep on top of needed services and maintenance. This maintains the value of the boat over time and resale value is preserved and so is it's useful life. Your boat is always ready and always beautiful.