Year End Timing Matters for Business Yacht Purchases
Disclaimer: This content is provided for informational purposes only. It is not legal, tax, or financial advice. Please consult a qualified tax advisor before making any purchase or investment decisions.
On July 4, 2025, the “One Big Beautiful Bill” (OBBB) was signed into law, bringing significant updates to the tax code that have quickly caught the attention of yacht buyers who plan to use their vessel for business purposes. With 100 percent bonus depreciation reinstated and the Section 179 cap increased, the new landscape has created a rare window of opportunity for qualified buyers who act before December 31.
While every tax strategy requires guidance from a professional, many owners who were already planning a purchase for charter or other legitimate business use are choosing to accelerate their timeline. The combination of favorable rules and the remaining time to close before year end is driving increased activity in the luxury market.
Bonus Depreciation Returns to 100 Percent
Under the new law, qualified assets placed in service after January 19, 2025 may be eligible for full first-year depreciation. For buyers operating within a legitimate business structure, this can dramatically shift the financial profile of a yacht acquisition.
For example, a buyer purchasing a three million dollar yacht and using it for business 70 percent of the time may be able to depreciate 2.1 million dollars in the first year. For those who qualify, this is one of the most powerful incentives available in the current tax environment.
Enhanced Section 179 Deductions
The OBBB also raises the Section 179 deduction limit from one million to 2.5 million dollars, with phaseouts beginning at four million. While bonus depreciation is typically the preferred route for large assets such as yachts, Section 179 adds flexibility for owners purchasing multiple assets or managing smaller business-related investments.
Why Buyers Are Acting Before December 31
These benefits apply only to qualifying purchases placed in service after January 19, 2025. There are no retroactive adjustments to prior years. With 100 percent bonus depreciation scheduled to remain through 2027, this year is the beginning of a favorable multi-year window, but the ability to capture deductions in the 2025 tax year depends entirely on timing.
Buyers who anticipate chartering or operating their yacht for business use are finding that closing before year end may offer significant strategic advantages. Vessel availability is tightening and several premium listings in the two to eight million dollar range are experiencing increased activity as buyers move to finalize deals.
Final thoughts and next Steps
For those planning to integrate yacht ownership into a legitimate business structure, the updated tax rules offer a compelling reason to move sooner rather than later. The key is proper planning and coordination with the right professionals.
If you are considering a purchase this year, the Autograph Yacht Group team can assist with vessel selection, charter suitability, and introductions to experienced marine tax advisors. Our brokers are available to discuss inventory, arrange private viewings, and help you navigate the process with discretion and clarity.
Disclaimer: This content is provided for informational purposes only. It is not legal, tax, or financial advice. Please consult a qualified tax advisor before making any purchase or investment decisions.
Sources: Tax Code, New Rules, BBB