How the New “Big Beautiful Bill Act” May Benefit Yacht Buyers
- MJ Yacht Pro
- 15 hours ago
- 3 min read
Updated: 42 minutes ago
Understanding Bonus Depreciation & Charter Strategy for Smart Yacht Ownership
In July 2025, a new U.S. tax law known as the One Big Beautiful Bill Act (“OBBBA”) reinstated 100% bonus depreciation for certain business assets placed into service after January 19, 2025. While this sounds technical, the impact for yacht buyers, especially those considering charter operations, can be significant.
For the right buyer, with the right structure, this change can make owning a yacht not just a lifestyle investment, but also a strategic business decision.
How the New “Big Beautiful Bill Act” May Benefit Yacht Buyers and What Does the Law Do?
Under this act, an eligible yacht used primarily for business may qualify for accelerated depreciation. Instead of writing off the vessel’s cost over many years, qualified buyers may be able to deduct a large portion—and in some cases, up to 100% of the eligible amount—in the first year of business use.
This applies to both new and pre-owned yachts, as long as the vessel is new to the taxpayer and the requirements below are met.
Who Potentially Qualifies?
To take advantage of bonus depreciation, the yacht must:
1. Be Used for Business More Than 50% of the Time
Most commonly, this means the yacht is placed into a charter program or used for corporate entertaining with proper documentation.
2. Be Properly Placed in Service
The yacht needs to be ready and available for business use after January 19, 2025, within the eligible timeframe.
3. Have Clear Records & Documentation
The IRS requires proof, such as:
Charter logs
Calendar/usage logs
Marketing and listing documentation
Operating agreements and charter program records
4. Comply With U.S. Waters or Flag Rules
Foreign-flagged yachts must generally spend more than 50% of time in U.S. waters (including U.S. territories).
Legislative Context
The 100% bonus depreciation provision was originally introduced under the Tax Cuts and Jobs Act (TCJA), signed into law by President Trump in December 2017. The current legislation reinstates full expensing through Section 70301, extending 100% bonus depreciation under Section 168(k)(2)(A) of the Internal Revenue Code.
This provision applies to assets with a useful life of 20 years or less, acquired after January 19, 2025, and placed into service before January 1, 2030—or before January 1, 2031 for longer-production assets such as aircraft. Specifically, Section 70301(b)(1)(A) amends Section 168(k)(1)(A) to insert “100 percent,” effectively eliminating the previously scheduled phase-down of bonus depreciation.
In practical terms, the reinstated rule covers a wide range of tangible business property, including superyachts and private jets, so long as they are used for legitimate business purposes more than 50% of the time.
A Simple Example
If a buyer purchases a $3,000,000 yacht and uses it 70% for charter or business activity:
The business-use percentage is 70%
The potential first-year deduction could be $2.1 million
This does not eliminate operating costs (crew, maintenance, insurance, fuel, etc.), but it may help offset taxable income when structured correctly.
Why This Matters in Today’s Yacht Market
For many of our clients, CEOs, business owners, investors, and entrepreneurs, the yacht purchase experience blends:
Lifestyle
Family enjoyment
Business strategy
Legacy and memory-making
The OBBBA simply adds another layer: the ability to treat yacht ownership as an operating asset when used in a legitimate charter or corporate use structure.
This is not a loophole. It must be real. The business use must be provable.
But for buyers who already enjoy hosting partners, clients, or plan to make their yacht available for charter, this law can create meaningful financial benefits.
A Strategic Advisory Model Matters
At J Brothers Yacht Sales, we don’t simply sell yachts; we guide clients through:
Vessel selection & inspection
Market value & condition/service history verification
Charter strategy & feasibility analysis
Understanding ownership structure considerations
Marketing & crew onboarding (if chartered)
Our role is to protect the buyer through the process so the yacht is not only the right match, but positioned correctly from day one.
Important Note
Every situation is unique. Buyers should consult with a qualified tax advisor who understands marine business, depreciation rules, and charter operations before relying on any tax benefit.
We work in collaboration with attorneys, CPA firms, and charter management companies to help clients evaluate whether this strategy is appropriate.
Final Thoughts
For those already interested in yacht ownership, this legislation provides an opportunity—not a shortcut. With proper planning, the right yacht, and a thoughtful charter management approach, ownership can be both enjoyable and strategically structured.
To learn more about how the New “Big Beautiful Bill Act” May Benefit Yacht buyers and how this may apply to your situation, or review yachts suitable for business use, our team is here to help.
Schedule a Private Advisory Call
J Brothers Luxury Yacht Advisors
Tampa • St. Petersburg • Sarasota • Ft. Lauderdale • Naples
📞 727-474-1238