How Buying a Boat Could Bring Surprising Tax Advantages

And Why It’s Worth Exploring With Your Accountant

Thinking about buying a boat? Besides the joy of being out on the water, the freedom to explore, and the unforgettable memories you’ll make, there’s another reason people are choosing to invest in a yacht or catamaran: potential tax benefits.

Now, we’re not tax advisors — and we always recommend speaking with a licensed CPA — but here’s what many boat owners are discovering.

1. Business-Ready Boating

One of the most common paths to possible tax advantages is when your boat is not just for pleasure, but also used for charter or instructional purposes. When you set up a business with your boat — often through a charter management program — you may be eligible for various deductions associated with:

• Loan interest

• Depreciation

• Maintenance and docking fees

• Insurance

• Business-related travel

It’s similar to how a rental property generates write-offs. However, the IRS has strict rules about what qualifies as a legitimate business. Your accountant can guide you through this process to ensure it’s set up properly.

2. Depreciation Benefits

Depending on your use and business structure, a boat may qualify for accelerated depreciation, including under IRS Section 179 or bonus depreciation guidelines. This could allow you to write off a large portion of the boat's cost in the early years — sometimes even in the first year.

This is especially appealing for high-income individuals looking for ways to reduce taxable income while investing in a tangible, enjoyable asset.

3. Educational and Instructional Use

Some owners use their vessel to offer sailing instruction, captained charters, or corporate training experiences. In such cases, certain operational costs may potentially be deducted. If your boat is part of an accredited program (like US Sailing instruction), this could strengthen your case for the boat being treated as a business tool.

4. Offset Ownership Costs

Even if you’re not chasing tax deductions, enrolling your boat in a charter program could generate monthly income and offset ownership expenses. You get to enjoy the yacht when you want, while a professional team charters and maintains it when you’re not aboard. For many, this model pays for slip fees, insurance, and more — all while keeping the boat in excellent condition.

5. Pass-Through Ownership Structures

Some buyers choose to form an LLC or partnership for boat ownership. These structures might provide options for how income and expenses are treated — especially if there are multiple owners or investors involved. Again, this is where professional guidance is key.

⚠️ A Friendly Reminder

We’re passionate about sailing and helping people find the right boat — but we’re not accountants or tax advisors. Your situation is unique, and tax law is complex. Before making a purchase decision based on tax benefits, be sure to consult a qualified tax professional who can walk you through the numbers and compliance requirements.

⚓ Ready to Talk Boats?

If you’ve been dreaming of yacht ownership, there may be more benefits than you realized. Whether you're interested in a sailing catamaran, a power yacht, or a boat that can earn income while you’re not using it, we're here to help you explore all the options — both fun and financial.

Book a consultation today to learn about available models, charter programs, and how to make boat ownership work for you.