A new boat that helps pay for itself.
Put a new boat into a business — a charter operation you run yourself or through a local charter company — and Section 179 and 100% bonus depreciation may let you write off most of its cost.
The saving many owners overlook.
There is a simple way to get a new boat and write off most of the cost of owning it at the same time. It's called Section 179, with 100% bonus depreciation.
Under current law, 100% bonus depreciation has been made permanent for qualifying property — including boats acquired and placed in service as a business after January 19, 2025. For 2026, a boat that is a business asset may let you expense its full cost in the year it's placed in service, subject to the applicable conditions.
Technically, any new boat we have, power or sail, would qualify. There's a real shortage of later-model and new sail and power boats for charter in the Clear Lake area, and our Key West office is affiliated with Blue Ocean Yacht Charters, which is also looking for boats for its fleet.
Why put your boat into charter.
- 01Charter income offsets ownershipCharter income generally covers part of what the boat costs you — slip and insurance, cleaning and upkeep — and most of the maintenance is taken care of.
- 02It's still your boatUse it whenever you like: block out the dates you need, keeping in mind it has to be in charter at least 50% of the time.
- 03Lighter use than the islandsA boat with a US charter company sees perhaps a quarter of the use of a charter boat in the islands.
- 04A plan for laterLet the boat help pay for itself while you're working full time. As retirement nears, phase it out of charter — and go cruising.
Ask about a boat for charter.
Tell us whether you're thinking power or sail, and we'll come back with the new boats that fit — and the charter partners who are looking for them.
Little Yacht Sales does not give tax advice. Please consult your tax attorney, accountant or CPA.