Bonus depreciation.
If your yacht qualifies as an active charter business, US tax bonus depreciation can shelter material income. Here's the mechanic — and the calculator below.
The qualifying tests
- The yacht is used >50% in an active trade or business (typically charter)
- The owner materially participates (or the activity rises to a trade-or-business via a manager)
- The yacht is placed in service in the tax year
- The activity has a profit motive (the IRS is skeptical of yacht losses without one)
The mechanic
For 2026 (under current law), eligible property qualifies for accelerated first-year depreciation. The amount depends on charter intensity (the >50% test) and your tax jurisdiction's rules. Get tax counsel familiar with yacht charter structures — the desk introduces specialists on request.
The risks
The IRS challenges yacht charter losses aggressively. If charter days are weak, if owner-use days are heavy, or if the structure looks like a tax shelter rather than a business, the deduction is denied and penalties apply. A real charter program with documented bookings, third-party management, and material days is essential.
Below is the desk's estimator. It is for orientation, not advice.