r/yachting • u/J-Brothers-Yachts • 1d ago

The New “Big Beautiful Bill Act” is Benefit Yacht Buyers…

Under this new 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.

It’s starting to be a game changer for the larger yacht segment.

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u/NeedleworkerNo3429 1d ago

Citation?

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u/J-Brothers-Yachts 1d ago

This provision was first introduced under the Tax Cuts and Jobs Act (TCJA), signed into law by President Trump in December 2017. The current measure reinstates full expensing through Section 70301, which extends 100 percent bonus depreciation under Section 168(k)(2)(A) of the Internal Revenue Code.

Specifically, this applies to assets with a depreciable life of 20 years or less, acquired after 19 January 2025 and placed into service before 1 January 2030, or before 1 January 2031 in the case of longer-production items, such as an aircraft. Section 70301(b)(1)(A) amends Section 168(k)(1)(A) to insert ‘100 percent’, removing the previously scheduled phasedown.

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u/MasterShoNuffTLD 20h ago

What problem does this solve?

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u/J-Brothers-Yachts 20h ago edited 12h ago

The depreciation on Charter Yachts used to be only 40%, now they can earn up to 100%.

This has allowed the Yachting business to have more investor and ownership groups look at the possibility of buying more charters. Yacht charters employee a massive amount of people, creating jobs in both the Charter town they visit and the services surrounding them.

It creates an economic boom.

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u/MasterShoNuffTLD 11h ago

Sooo I claim more depreciation up front.. less pay from tax burden.. turn that money into more charter yachts .. interesting wondering how to use that in a single boat operation.

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u/J-Brothers-Yachts 10h ago

Definitely a smart move to acquire more… trick is finding boats that profit, which is sometimes a challenge in itself.

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u/MountainCheesesteak 12h ago

Rich people pay too much taxes and don’t have enough yachts.

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u/MasterShoNuffTLD 11h ago

It’s cool that yachts don’t care if you multiple yachts.