Article Date:
July 2021

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Tax Rules That Allow Tax Deductions for Your Yacht

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 are 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 providing no business entertainment on this yacht. This should be easy to do because business entertainment is no longer deductible, thanks to the Tax Cuts and Jobs Act (TCJA).


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 ... Log in to view full article.

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