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Smart Yacht Ownership

Smart Yacht Ownership. Why Smart Yacht Ownership?. Currently, IRS allows significant tax deductions for individuals in high tax brackets. Tax Savings can effectively discount a boat by 33 % . Generate income to put towards your dockage, insurance, and maintenance.

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Smart Yacht Ownership

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  1. Smart Yacht Ownership

  2. Why Smart Yacht Ownership? • Currently, IRS allows significant tax deductions for individuals in high tax brackets. • Tax Savings can effectively discount a boat by 33%. • Generate income to put towards your dockage, insurance, and maintenance. • Allows you to buy the boat you want and put it where you want. • Save state sales tax on yacht purchase. • Allows unrestricted use.

  3. Smart Yacht Ownership American Taxpayer Relief Act of 2012 (passed 1/1/13) • Section 179 Depreciation –IRS will allow a deduction of up to $500,000 for property placed into service. • Section 168K Bonus Depreciation – IRS allows businesses to take a 50% bonus depreciation on Newequipment and improvements placed into service. • Normal First Year Depreciation is also allowed. • Business tax advantages are “above the line.” This means it will lower the amount subject to AMT

  4. Smart Yacht Ownership Example of Section 179 and 168K benefit to you: Equipment Purchase:$650,000 First Year Write Off: $500,000 ($500,000 is maximum in 2013) 50% Bonus First Year Depreciation: $ 75,000 ($650,000 - $500,000 = $150,000 X 50% Bonus) Normal First Year Depreciation: $ 15,000 (20% in each of 5 years on remaining amount) Total First Year Deduction: $590,000 ($500,000 + $75,000 + $15,000) Tax Savings: $212,400 ($590,000 X assumed tax rate of 36%) Equipment cost after Tax Savings:$437,600 (Effectively a 33% discount!)

  5. Smart Yacht Ownership Caution! - Tax Savings are not automatic. • If not Purchased Properly they may be disallowed. • If not Positioned Intelligently they may be disallowed. • If not Actively Managed and Properly Operated they may be disallowed. • The FYG Program is clearly your best choice due to our knowledge, experience, ease of access, 70-30 program, 365 day season, and no repositioning costs required.

  6. Smart Yacht Ownership • FYG engaged an independent outside CPA to research and summarize the IRS Regulations, Guidelines, and Tax Court Case Law concerning Yacht Charter Businesses. This report is available for your CPA to review. • Outside Tax Experts, Advisors, & Certified CPA’s have worked with FYG to design & develop the 70-30 plan which helps you effectively comply with IRS regulations. FYG is the only charter company to operate a plan designed by experts to effectively comply with IRS Guidelines.

  7. Smart Yacht Ownership The 70-30 Program • Owners receive 70% of charter revenue. FYG receives 30% for marketing, advertising, & co-ordination. • The costs your vessel incurs such as dockage, insurance & maintenance, are applied against your portion and the remainder is net revenue to you. • This plan also allows you to select the layout best for you such as an “Owner’s Layout” although an owner’s version may generate less income. • Outside CPA designed Charter Business Plan Templates are available for your use. Ask your FYG Broker for a Template.

  8. Smart Yacht Ownership-Summary • Saves you up to 33% of your purchase price. • Owner must be actively involved in Program • EXPIRES 12/31/13! MUST ACT NOW! • References: • http://section179.org/section_179_deduction.html • http://section179.org/section_179_calculator.html • http://www.crestcapital.com/tax_deduction_calculator

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