Charter yacht through certified operator; documented business use enables §168(k) bonus depreciation + Augusta 14-day rule.
Yachts placed in a legitimate charter fleet (Moorings, Sunsail, private charter) with >50% business use can qualify for §168(k) bonus depreciation. Additionally, if the vessel doubles as an occasional business meeting venue for the owner's business, the §280A(g) 14-day rule allows the owner's business to rent the yacht at market rate — tax-free income to owner, deductible to business. Requires meticulous charter documentation, US Coast Guard commercial endorsement, and marina/insurance compliance.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Own a 1/16 to 1/2 fractional share; deduct >50% business use via §168(k) bonus + §179 up to full share cost.
TCJA killed §1031 for personal property, but aircraft-to-aircraft business-use swaps still deferred pre-2018 gains via reverse structures.
Lease your aircraft to a Part 135 charter operator; charter revenue + business-use documentation supports depreciation.
Aircraft is 'listed property' — fall below 50% qualified business use and lose accelerated depreciation with recapture.