Are there advantages to placing a boat in an ongoing charter company?
Yes, there are many tax and cash flow advantages. • You are able to depreciate the boat (10 year accelerated depreciation MACRS) • Section 179 expense deduction in the year of acquisition (up to $107,000 in 2007) • You are able to deduct all ordinary and necessary charter related expense (berthing, insurance, maintenance, interest etc.) • The boat will receive the care and management by a professional staff (varies with charter company). • You receive income from a charter. • You and those that charter your boat will receive good training using the American Sailing Association (ASA) Training Program. • You will have the opportunity to dramatically reduce the time it takes to pay off your boat. • There will be a dramatic reduction in ownership expenses. • There may be an easier access to slips, an increasingly scarce commodity.
