Qualifying for tax deductions on a yacht or other luxury boat requires tax knowledge.
First, you need to use the yacht more than 50 percent for business transportation.
Once you meet the more than 50 percent test, your potential tax deductions include fuel costs, insurance, repairs, dock or slip fees, caretakers’ salaries, hurricane storage, and depreciation (including Section 179)—all of which is limited by tax rules on luxury water transportation.
Second, the yacht is an entertainment facility. Tax law treats entertainment facilities harshly so you need to seriously consider no business entertainment on this yacht.
Use Your Yacht More Than 50 Percent for Business Travel
Tax law gives you two reasons to use your yacht more than 50 percent for business travel:
1.
Possible escape from the entertainment facility rules (discussed later)
2.
Escape from the penalties that apply to listed property
Tax law classifies yachts and ... Log in to view full article.
