100% bonus depreciation is back for good. Put a multihull to work in a charter business and the boat can help pay for itself. Anyone can claim the deduction on a tax return. Keeping it when the IRS comes asking, years later, is another matter.
Private ownership, handing the boat to a charter company, or running the charter business yourself. Each works. They just pay off in very different ways, and the difference between passive and active is where most owners get it wrong.
Want professional management and plenty of time aboard, without following the tax rules? That’s Charter Management. Compare every way to own on the Charter Yacht Ownership overview.
Done right, charter revenue covers the boat’s running costs while depreciation creates a business loss on paper. That loss can flow through to offset your other income. Done wrong, it all unwinds, with interest.
At a 37% bracket, a $1,000,000 boat with 100% bonus depreciation is a $1,000,000 deduction, worth up to $370,000 in tax. That’s the number on every brochure. Here’s what the brochures leave out:
Assumes charter revenue roughly equals operating costs, no other business income, and the boat placed in service this year. Real results depend on your whole return. That’s why a CPA joins our seminar.
Everybody knows the headline. The IRS cares about the fine print. Here’s a preview of the rules we walk through, with real examples, in the Business Ownership Seminar.
To materially participate you generally need 500+ hours a year on the business, or 100+ hours and more than anyone else.
The boat has to stay above 50% qualified business use, not just in year one but every year you hold it.
Your own use can never push business use to 50% or below. Owners who stay comfortably in the 35–40% range leave a margin, so a slow charter season or an extra family trip will not tip the balance.
A charter-ready layout, a base where boats actually book, a written business plan and a realistic path to profit.
Property used predominantly outside the United States generally can’t take bonus depreciation and falls back to a slower schedule.
For 2026, net business losses over $256,000 (single) or $512,000 (joint) can’t offset wages and investment income this year.
Guaranteed-income programs are built for simple, hands-off ownership. Claiming active-business tax benefits on one is where owners get into trouble.
What counts as an hour, which records hold up, how to structure the business and when to place the boat in service. We cover it all, with a CPA in the room.
Save my seatNobody approves the deduction up front. You claim it on your return, and the IRS can examine it years later, after the boat has been chartered, sailed and maybe sold. By then, the only thing that counts is what you documented at the time.
1Will you keep a log of hours on the business as you go, not rebuilt later?
2Will you spend 500+ hours a year, or more hours than anyone else, including the management company?
3Will personal use stay comfortably below 50%, ideally around 35–40%, every year?
4Do you have a written business plan with a realistic path to profit?
5Is the boat based and flagged where it can take bonus depreciation?
6Do you know what you’ll owe in recapture when you sell or stop chartering?
Each “no” or “not sure” is a rule an examiner would ask about.
Depreciation defers tax. It doesn’t erase it. When you sell, or when business use drops to 50% or below and the boat becomes a private yacht, the tax savings can come back as ordinary income. Plan the exit before you buy.
Free, live and recorded. Hosted by TMC’s Chief Operating Officer, 20+ years in the industry and thousands of catamaran sales managed worldwide, with a licensed CPA who specializes in boats as a business on hand for questions. It’s also a core module of the TMC Buying Academy.
That’s why we bring a licensed CPA to every seminar.
Yes. The 2025 tax law made 100% bonus depreciation permanent for qualifying property acquired after January 19, 2025. It still has to be placed in service, and you still have to meet every other rule on this page.
Generally yes, as long as you haven’t used the boat before and you buy it from an unrelated party. New or brokerage, the same compliance rules apply.
Yes, within limits. Personal days count against the business-use and personal-use tests, and how days aboard doing maintenance are counted has its own rules. We cover how owners plan their time aboard in the seminar.
An LLC is the most common structure for liability and clean books, but how the business is set up and taxed is a decision for you and your CPA.
It can, but location and flag affect whether bonus depreciation is available at all. This is one of the most misunderstood parts of the program and needs to be settled before you buy.
Nothing. The seminar is free, and you’ll get the recording when you register. If you want to go further, the TMC Buying Academy is $2,500 and credited at closing when you buy through TMC.
Save your seat at the next Multihull Business Ownership Seminar, or ask for a call with a TMC broker who places boats into charter. We’ll send session dates and the latest recording.
Tell us a little about your plans. In the message, let us know if you’d also like a private call or CPA consultation.
Important: The Multihull Company is a yacht brokerage and dealer. We are not tax advisors, CPAs or attorneys, and nothing on this page is tax, legal or financial advice. It is general information about U.S. federal tax rules as of 2026, which change and apply differently to every owner. Examples and calculations are illustrations only. Consult a qualified tax professional about your own situation before buying a vessel for business use.
