Yacht Tax Advisory

Defensible positions Clean documentation Audit-ready posture

Yacht ownership, charter activity, and major refits can create tax exposure where timing, use, and documentation all intersect. Our work is built around one objective: positions that are coherent on the facts, supported by records, and defensible if reviewed.

Current authority note

Bonus depreciation rules are moving, and timing matters.

The IRS released Notice 2026-11, which provides interim guidance on the additional first-year depreciation deduction under §168(k). For owners planning purchases or refit schedules, eligibility can turn on acquisition and placed-in-service timing, and written binding contract rules can affect whether property is treated as acquired after the relevant effective date.

Advisory focus areas

These are the areas where yacht ownership most commonly creates exposure, and where the quality of documentation often determines the outcome.

Structure

Ownership posture and separation

Align ownership structure, activity separation, and governance with the posture being reported.

Depreciation

Bonus depreciation readiness

Use, timing, and substantiation review so depreciation positions are supportable when it matters.

Substantiation

Documentation architecture

Consistency across logs, contracts, invoices, approvals, and fund flow to reduce “file fragility.”

Operations

Expense discipline and capex policy

Controls that prevent category drift and support defensible repairs vs. improvements treatment.

Audit posture

Review readiness

Build an organized record package designed to survive questions, diligence, or inquiry.

Exit

Sale and transaction readiness

Pre-sale cleanup and positioning to reduce last-minute surprises and timeline disruption.