Understanding Bonus Depreciation & Yacht Charter Strategy: Turning Yacht Ownership into a Smart Financial Move

In July 2025, Congress passed the One Big Beautiful Bill Act (“OBBBA”), legislation that, among many changes, reinstated 100% bonus depreciation for qualifying business assets.

Through Section 70301 of the Act, the bill amends Internal Revenue Code § 168(k) to restore full first-year expensing for eligible property placed into service after January 19, 2025, and before January 1, 2030 (or January 1, 2031 for long-production items).

For yacht owners, this can mean a powerful opportunity to combine lifestyle and business strategy, especially when integrating charter operations or corporate use.

How the Law Works

Under IRC § 168(k)(2)(A)**, vessels used primarily for business may qualify for accelerated depreciation. Rather than spreading deductions over many years, eligible owners can deduct up to 100% of the business-use value in year one.

To qualify, the yacht must:

• Be used more than 50% for business (e.g., charter, corporate events).

• Be placed in service after January 19, 2025.

• Maintain detailed records—charter logs, marketing listings, usage calendars.

• Operate primarily in U.S. waters if foreign-flagged.

An Example in Practice

A buyer acquires a $3 million yacht and places it into a charter program with 70% business use.→ 70% × $3 million = $2.1 million potential first-year deduction under § 168(k).

This doesn’t eliminate ongoing expenses, but it can substantially reduce taxable income when properly structured.

Why It’s Relevant and the Advantage of Bonus Depreciation & Yacht Charter Strategy

The original Tax Cuts and Jobs Act of 2017 (Pub. L. 115-97) introduced bonus depreciation, but it was scheduled to phase out by 2027. The OBBBA of 2025 (Pub. L. 118-214) reinstates full expensing, reviving a valuable incentive for high-net-worth buyers and business owners.

At Seaside Luxe, we see clients pairing luxury waterfront real estate with yacht ownership. The reinstated law enables them to align both passions, home and yacht, within a strategic, tax-aware framework, and now offers bonus depreciation & yacht charter strategy for yacht owners.

Strategic Advisory Collaboration

Through our partnership with J Brothers Yacht Sales, we help clients evaluate:

• Which yachts and ownership structures meet business-use criteria

• How to integrate charter management for legitimate income and compliance

• Proper documentation and CPA coordination

• Long-term asset planning that supports both lifestyle and financial objectives

Together, we ensure that every client’s yacht and home portfolio operates efficiently and transparently.

A Responsible Opportunity

This is not a loophole or a marketing gimmick. The OBBBA reinstatement is a legislated business incentive intended to stimulate U.S. investment and job creation. When used correctly, with clear records and professional oversight, it can make yacht ownership not only enjoyable but strategically sound.

📞 Speak with our Advisory Team

Explore qualified yachts and homes: www.WaterfrontYachtHomes.com