New Tax Laws for Yacht Charter LLCs in 2025

New Tax Laws for Yacht Charter LLCs in 2025

If you’re considering launching a yacht charter business through a Limited Liability Company (LLC), now is the time to pay close attention. The newly-enacted One Big Beautiful Bill Act of 2025 (OBBBA) introduces significant changes that can provide substantial tax advantages, but only if your venture operates as a legitimate for-profit enterprise.

What’s new under OBBBA?

One of the most impactful changes is the reinstatement of 100% bonus depreciation for qualifying property. This means assets placed in service after January 19, 2025, can be fully expensed in the first year rather than depreciated over multiple years.

For yachts used specifically in charter operations, this opens up opportunities for immediate full deductions—provided that the vessel is utilized predominantly (typically 50% or more) in business activities such as third-party charters within U.S. waters.

Why this matters for yacht-charter LLCs

Forming an LLC and deploying your yacht into a bona fide charter business offers powerful tax-planning benefits. However, it’s essential to understand that the IRS scrutinizes these arrangements closely. To maintain these advantages, owners must:

Practical steps to get started

⚠️ Disclaimer: This article serves informational purposes only and does not constitute legal, tax, or investment advice. Tax laws—especially those within OBBBA—are subject to change; eligibility depends on individual facts and circumstances. Always consult licensed professionals before proceeding with any related actions.

This news update aims to keep you informed about essential changes impacting your future maritime ventures at Yachting Experts! If you have any questions or need assistance navigating these new regulations feel free to reach out at info@yachtingexperts.com!

Photo Credit:  Azimut Yachts-Azimut S8, 80’ S Series, powered by (3) Volvo Penta IPS 1350, 4 Staterooms (8 guests); 4 full heads plus Crew Cabin for 2.