NEWCOAST ANNOUCEMENTS

Maximize Your Yacht's Potential: The Return of 100% Bonus Depreciation

For buyers looking for their next vessel purchase, the return of 100% Bonus Depreciation presents an unparalleled financial opportunity made possible by the 2025 One Big Beautiful Bill Act (OBBBA). This legislation allows you the opportunity for your luxury asset to qualify for bonus depreciation.

Here's how this powerful tax strategy could work for you:

• Acquire the yacht or asset that fits your lifestyle; must be acquired after January 19th, 2025.
• Consult your CPA or tax advisor to setup correct ownership and operational structure
• Ensure operational logs and documentation are audit ready.

This could lead to potential significant tax savings. For example, if you purchase a yacht for $250,000 and are in a 35% tax bracket, a 100% deduction could result in a potential tax savings of up to $87,500.

What You Need to Know

To qualify for these deductions, the vessel must be used for qualified business purposes and be operated in U.S waters (including Puerto Rico and U.S Virgin Islands) more than 50% of the time while under your ownership. U.S. and foreign flagged vessels could qualify which allows for flexibility on how to structure ownership in accordance with your tax advisor’s recommendations.

At Newcoast, we specialize in helping yacht owners navigate these complex opportunities. Our team is here to guide you through the entire process, ensuring you can take full advantage of this strategic financial benefit while working alongside your tax and legal team.

Learn More