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Business Owners Buying Yachts

Discussion in 'General Yachting Discussion' started by yachtnostalgia, Mar 21, 2005.

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  1. yachtnostalgia, Mar 21, 2005
    #1
    yachtnostalgia

    yachtnostalgia New Member

    Joined:
    Mar 21, 2005
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    Location:
    Tampa/St. Pete, FL
    I have a question for the group - I am hoping to figure out a good strategy for an acquaintance of mine.

    Do most business owners buying ($2MM - $8MM) yachts have the business purchase the yacht (depreciation shield in Year 1, etc), or do they buy the yacht as an individual? As I'm sure you get both, any idea as to the rough percentage-split of the two methods?

    What are the issues that would lead an owner buy it as an individual (shaky ground with the IRS probably being Reason #1)? Thanks in advance for your input.
  2. AMG, Mar 21, 2005
    #2
    AMG

    AMG YF Moderator

    Joined:
    Jul 26, 2004
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    Location:
    Sweden
    For Americans I have no knowledge of tax implications with yacht ownership, but in general yachts are owned by a company that is running the yacht as it main business. The owner of that company could be another company or an individual, called the beneficial owner. The company is, also in general, founded where the yacht is flagged and the choice of flag state has many considerations, again regarding to tax situations, privacy and also manning and charter. The broker can tell you more with regards to the individuals status and with preowned yachts you often buy the company owning the yacht. This is a comprehensive topic where specialist companies can also give advise and organize everything prior to the hand-over of the yacht to avoid costly mistakes...