At Moskowitz LLP, we believe in helping clients make the most of their lifestyle investments—and few investments are as rewarding or versatile as owning a boat. Whether you’re considering purchasing a yacht for charter purposes or simply dreaming of a second home on the water, the tax code offers powerful incentives that can turn your dream into a strategic financial move.
Led by senior partner tax attorney Steve Moskowitz, our firm identifies and utilizes the many overlooked tax advantages of boat ownership. From business deductions to estate planning strategies, owning a boat can offer significant investment and tax opportunities—when done right.
Turn Your Boat Into a Business Asset
With proper planning, your boat can qualify as a business, enabling you to deduct up to 100% of the business-related portion of its cost through strategies such as Section 179 and bonus depreciation. Operate short-term charters (seven days or less), and you may even avoid passive loss limitations, making your investment immediately more financially and tax advantageous.
Enjoy the Perks of a Second Home
If your boat includes a sleeping area, toilet, and cooking facilities, it may qualify as a second home. This opens the door to deducting mortgage interest and property taxes and even allows you to rent it out for up to 14 days a year tax-free under the Augusta Rule (IRC §280A(g)).
Plan for the Future—Tax-Free
A properly planned estate can pass your boat to the next generation with a stepped-up basis, potentially eliminating capital gains taxes on its sale. Alternatively, consider using the boat as part of a Charitable Remainder Trust (CRT) for immediate tax deductions and long-term charitable giving while continuing to enjoy your use of the boat during your lifetime.
We Want It to Work for You
Every client’s circumstances are different. That’s why we don’t offer cookie-cutter advice. Our tax attorneys and CPAs work closely with you to evaluate your goals and determine how best to plan ownership, income, depreciation, and estate planning. And yes, you’re allowed to enjoy the boat too—remember, the law recognizes that pleasure and business can coexist as the federal Court explained in the Disney case.
Ready to explore the full tax advantages of boat ownership?
Contact Moskowitz LLP today to schedule a complimentary consultation with Steve Moskowitz and let our expertise navigate your way to smarter tax planning.
📞 Call us at 415.394.7200
🌐 Visit us at www.moskowitzllp.com
📧 Email us at info@moskowitzllp.com
Moskowitz LLP — Turning Your Passion Into a Tax Strategy.