Active Yacht Ownership Program


In our experience, yacht charter management is a great way to reduce the cost of yacht ownership and, with the new tax laws currently in effect, you will find that those costs can be even further reduced. Sailonline and Catamaran Guru therefor colaborated to develop a Yacht Ownership Program that will dramatically reduce costs over a very reduced time period by simply applying these tax laws. We have applied this rule to our own yacht businesses as well as many of our clients' with great benefits. 

Section 179 is one of the few incentives included in any of the recent Stimulus Bills that actually helps small business. The original target of this legislation was much needed tax relief for small businesses - and millions of them are actually taking action and getting real benefits.  All businesses that purchase, finance, and/or lease less than $2,000,000 in new or used equipment during tax year 2013 should qualify for the Section 179 Deduction.

How does this apply to you?

Section 179 should definitely be a part of your 2013 strategy. This is the perfect opportunity for anyone looking to buy a new yacht at a substantial discount! You can legitimately divert some of the taxes that you're already paying to create equity in your new yacht. Buying a new yacht and placing it in charter service is an effective business tool provided the business is set up correctly and the operation is structured to qualify for the tax benefits and remain in compliance going forward. 

Section 179 at a glance - New for 2013

2013 Deduction Limit = $500,000
This is good on new and used equipment.

2013 Limit on equipment purchases = $2,000,000 
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced.

Bonus Depreciation = 50% 
This is taken after the $2 million limit in capital equipment purchases is reached. Note: Bonus Depreciation is available for new equipment only. Bonus Depreciation can also be taken by businesses that will have net operating losses in 2013.

Here is an example of Section 179 at work:

2013 Section 179                

(example calculation)

Equipment Purchase:


    First-Year Write Off:

    $500,000 = max in 2013

   First-Year 50% Depreciation:

   $650,000-$500,000= 150k x 50%

$  75,000
    First-Year Standard Depreciation:

    20% in each of 5yrs on remaining $

$  15,000
   First Year Total Deduction:

     $500,000 + $75,000 + $15,000

     Tax Savings:

     $145,600 x 36% tax rate


Equipment cost after Tax:

$650,000 less all tax deductions


*The above is an overall, "simplified" view of the Section 179 Deduction for 2013. For more details on limits and qualifying equipment, please contact us directly.

Sailonline's team of specialists includes recognized experts in this field:

Sailonline & Catamaran Guru's experts, together with your personal tax advisor will put your business on the right track from the outset. We will work with you and your tax professional to qualify your yacht as a business to legitimately take advantage of tax deductions available to you. Although the acquisition of a new yacht may be an effective business tool, the tax benefits must be carefully planned, documented, and implemented and the Sailonline team will assist you every step of the way.

  • We have the most complete program available to make it possible for you to qualify your yacht purchase to be eligible for this program and we will explain why the yacht as a business program will work for you.
  • How to set up your yacht business to be in compliance with current tax laws.
  • We will guide you when setting up your yacht as a business to help you qualify for tax advantages that can offset your ordinary income.
  • We familiarize you with the the current tax laws and how they apply to your particular situation.
  • We will discuss and plan your exit strategy or options for upgrading to a larger yacht and how to make your yacht be part of your retirement plan.
  • Sample Business Plan

Sailonline has access to some of the top brands of yachts in the world and we offer the added luxury of making it possible for you to place your new yacht into service at charter bases in multiple locations around the world. Sailonline is committed to developing innovative ways to help make yacht ownership more efficient, affordable and enjoyable.

Contact us to discuss your yacht business startegy.

*This information is general in nature and purchasers are encouraged to seek experienced legal counsel in yacht acquisition planning and implementation. Sailonline is not a licensed Tax Attorney or CPA and is not qualified to give legal advice but we can put you in touch with experts who are.