June 16, 2025
Rachel
Business Yacht Ownership: Financial and Tax Strategies for Yacht Purchase and Ownership
Business Yacht Ownership
Filmed at the 2025 edition of the Palm Beach International Boat Show aboard SUNDANCE, this conversation between JFA Yacht CEO James Fachtmann and Gary McKinley of Tideline Solutions highlights some of the key tax and financial strategies behind business yacht ownership.
Watch the Full Interview Here
Make Yacht Ownership a Strategic Part of Your Financial Plan
For most, yacht ownership brings to mind thoughts of enjoyment, leisure, downtime with loved ones, and sizeable discretionary spending. Topics like wealth management, financial planning, income generation, and tax reduction strategies are not often associated with yacht ownership. In partnership with JFA Yacht, Gary McKinley of Tideline Solutions offers expert financial advice to yacht owners and buyers. Gary and his team help JFA Yacht clients unlock tax advantages, preserve personal capital, and make informed decisions regarding yacht purchase and ownership.
Gary holds over 27 years of wealth management experience and specializes in aligning the lifestyle goals of his high-net worth clients with intelligent financial planning and strategy implementation. In Gary’s view, yacht ownership is not just a recreational purchase, but an asset class. He states that a yacht can be a strategic asset to own, particularly during uncertain times, as they are not necessarily correlated to the market.
James and the team of brokers at JFA Yacht always ask clients what their purpose for owning a yacht is. If the answer is not full-time live aboard, but rather occasional family use, flexible location, and cost minimization, then a business ownership model may be the right fit.
A Tax-Efficient Way to Own Your Dream Yacht
With the strategies offered by Tideline Solutions, yacht buyers can place a yacht into a business entity and use bonus depreciation and other tax tools to offset taxable income. Additionally, Tideline Solutions helps clients collateralize their brokerage accounts to fund the purchase, circumventing liquidation of the investments within.
Finally, yacht maintenance and running costs can be offset with charter income. JFA Yacht provides yacht management and charter solutions that ensure owners get maximum enjoyment out of their yacht while also covering operational costs and not worrying about logistics.
The result is a significant lifestyle asset, potentially reduced tax liability, and retention of investments that continue to grow over the years of your yacht ownership journey.
Is Business Yacht Ownership Right For Me?
Business yacht ownership is often a go-to strategy for three main types of owners:
1. Profit-Maximization Seeking Owners
Looking for significant income generation through charter and don’t mind increased upkeep and wear on the yacht.
2. Break-Even Owners
Aim to enjoy occasional use of the yacht while breaking even on the operating and maintenance costs thus preserving the long-term resale value.
3. Ownership Cost Reduction for Lifestyle Owners
Prefer to forgo charter revenue in favor of personal enjoyment, marginally offset cost of ownership and incur a business loss for the lifestyle or location benefits.
Due to the tax and financial strategies available, the business yacht ownership model is especially beneficial for clients with recent liquidity events (business sale, inheritance, etc.), high tax burdens, or an interest in long-term asset acquisition.
Planning For the Future: Upgrades and Leverage
Tideline Solutions and JFA Yacht plan for more than just the initial yacht purchase. Together, we help our clients plan across multiple yacht ownership cycles to upgrade intelligently, leverage tax codes repeatedly, and build toward retirement. Upon retiring, owners are left with either their dream yacht paid off and ready to enjoy, a yacht generating charter income, or even just an asset to sell for liquidity. James states that JFA Yacht clients often start with the purchase of one yacht and, over 10-15 years, upgrade toward their ideal vessel, all while leveraging tax and financial tools.
Find Out How You Can Own Your Dream Yacht Responsibly
If you are interested in the lifestyle upgrade and enjoyment that comes with yacht ownership but are unsure of the financial implications, contact James Fachtmann at JFA Yacht. Together with Gary McKinley and the team of experts at Tideline Solutions, we offer advice and plans that make this model work for you while you enjoy the many benefits of yacht ownership.
Contact James Fachtmann at jfayacht.com or call +1 954-732-5825
Contact Gary McKinley at tidelinesolutions.com
