Smart Yacht Ownership. Why Smart Yacht Ownership?. Currently, IRS allows significant tax deductions for individuals in high tax brackets. Tax Savings can effectively discount a boat by 33 % . Generate income to put towards your dockage, insurance, and maintenance.
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Smart Yacht Ownership
American Taxpayer Relief Act of 2012 (passed 1/1/13)
Example of Section 179 and 168K benefit to you:
First Year Write Off: $500,000
($500,000 is maximum in 2013)
50% Bonus First Year Depreciation: $ 75,000
($650,000 - $500,000 = $150,000 X 50% Bonus)
Normal First Year Depreciation: $ 15,000
(20% in each of 5 years on remaining amount)
Total First Year Deduction: $590,000
($500,000 + $75,000 + $15,000)
Tax Savings: $212,400
($590,000 X assumed tax rate of 36%)
Equipment cost after Tax Savings:$437,600
(Effectively a 33% discount!)
Caution! - Tax Savings are not automatic.
The 70-30 Program