Join Date: Feb 2010
Location: Narragansett Bay
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Re: Buying a yacht
I've never done it, but last I saw the pitch, it included tax savings from taking depreciation deductions on the boat. That is a real rat hole. After several years, your tax basis in your boat approaches zero. If you change your mind and want to sell her, you then have a huge gain on sale, which you will owe that tax on. Gotcha......
Of course, the charter sales folks have you covered. They will offer you a trade into another often larger boat, which doesn't trigger the gain. And away you go.
As they say, you can check in, but you can never leave.
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In the harsh marine environment, something is always in need of repair. Margaritas fix everything.