Owning and sailing a yacht, catamaran, or any boat Power or sail for that matter, is a glorious adventure. Paying for maintenance, insurance, dockage, new “must-have” equipment, and other bills is an inglorious adventure as you watch the sum add up monthly. But, there are ways to reduce the overall cost of owning a yacht so you can get back to smiling with the wind in your sails or cutting through the waves. You’ve come to the right place! We have used these same methods with our own boats as well as hundreds of others looking to keep costs low while owning the boat of their dreams. Here is what we have learned over the last 15+ years.
INTERESTED IN REDUCING THE COSTS OF YACHT OWNERSHIP?
REDUCING COSTS OF YACHT OWNERSHIP
In the past, YACHTMANN.COM worked with buyers sailing the world to offset their yacht costs as well as to funding living expenses. One of the first ideas was to generate income. Owners have offered SCUBA diving charter excursions. These excursions were successful… Owners also taught weeklong live-aboard sailing schools in the Caribbean and Bahamas in catamarans and mono-hulls.
They have offered fully-catered, crewed charters in different parts of the world. These experiences were not only a great way to fill up the cruising kitty, but were also life-enriching experiences.
Owners have also managed yacht charters, worked with yacht manufacturers, and even partnered with numerous yacht management companies globally. Through our adventures and yacht sales, we met hundreds of people from all walks of life and more than 15 years later, we are still in contact with most of them.
So many we have met along the way and are still good friend, they have owned power & sailing yachts (Both Catamaran & mono-hull) in charter management fleets in the Virgin Islands, Latin America, Mexico, Bahamas, Florida, Keys, East coast, West Coast, Southern United States & even Canada. They have found success in tax advantages in several different methods such as:
- Bareboat in charter management fleets
- Crewed charter fleets
- Yacht as a Business (YAB)
- Yacht as a Office (YAO)
- Yacht instruction
- Fishing charters
- TRYB4UBUY type charters.
- Charter yacht owned outright or with partners.
We have seen all sides of the coin when it comes to yacht ownership. Our experiences have led us to regularly recommend placing yachts in a charter program as a way to offset costs of yacht ownership. Our clients have said things like, “We’ve enjoy a great activity with our children while teaching them about seamanship, discipline, marine science, and respect & love of the fragile environment. We’ve made many great new friends. We owned a boat partly paid for by charter income & Tax Advantages, with years of personal enjoyment. Not many things we could have smartly spent our hard earned money on that would have given us so much enjoyment & priceless fulfillment over the years…”
With the help of specialized CPA’s and fiduciary Tax Advantage specialists, We have practiced these techniques & helped many yacht & aircraft brokerage buyers do the same. Offsetting the costs of yachts with charter income & tax advantages makes sense for most buyers. Whether you plan to charter your yacht & go cruising through the years or want to simply own a yacht you can easily step on step off while having your yacht taken care of by professionals that will keep here in show ready & fun ready condition in your absence, it makes sense to make your yacht pay for at least some of it’s annual costs.
It is very important to not get trapped into something that does not work for you, not all management companies or charter operations are good fits for owners. Not every yacht fits the “charter boat” business model either. We make sure that you understand what you are getting into. We help you Read & understand your agreements. We help make sure you have a well defined good exit strategy. We help you gain confidence with black & white plans through the grey matter with good expert fiduciary advisors & CPA’s that are focused on your interests… not the salesmen’s.
So, you may have heard that there are many ways to reduce costs of ownership. While all Tax Advantages are not for everyone, we share these 10 tips which may fit your lifestyle & budget objectives.