The Game-Changing Tax Advantages of New 2025 Legislation

The yachting world is celebrating the return of the original “bonus depreciation” benefits. The One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025, has restored 100% bonus depreciation for qualified business property – including yachts used for legitimate business purposes.

It means yacht owners and prospective buyers may once again maximize their yacht investment benefits by significantly reducing their tax liability.

What Changed and Why It Matters

Previously, bonus depreciation was scheduled to phase out dramatically, dropping to 40% in 2025, then 20% in 2026 before disappearing altogether by 2027. The OBBB legislation reversed this phase out, reinstating full bonus depreciation for qualified property acquired and placed in service after January 19, 2025.

Qualified yacht owners may deduct the entire purchase price of their vessel in the year of purchase, rather than spreading depreciation over multiple years. This immediate tax benefit can result in substantial savings that effectively reduce the yacht's net acquisition cost.

The Business Use Requirement

The primary requirement to access this benefit lies in the legitimate business use of your yacht, and the proper documentation of this business use to meet the IRS requirements.

The vessel must be used more than 50% of the time for qualified business activities to qualify for both bonus depreciation and Section 179 depreciation deductions. This may include client entertainment, corporate retreats, business meetings, charter operations, and other revenue-generating activities.

How Current Yachts Can Help

At Current Yachts, we know that buying a yacht is more than just a luxury purchase. It’s a complex financial decision that deserves expert support. We go beyond helping you find the right vessel by connecting you with industry professionals who can assist with ownership structure and tax planning.

While we are not financial advisors, we work closely with trusted firms experienced in helping clients explore legitimate business uses for their yachts. Once we understand your goals, we’ll guide you to the right resources to create a structure that aligns with IRS requirements and supports your long-term plans.

From documentation and business-use protocols to strategies that maximize depreciation benefits, you'll have access to experts with the knowledge and experience to help you get the most from your yacht investment.

Trusted Expertise

Navigating yacht-related tax rules requires specialized guidance. That’s why we partner with CPA firms who focus on maritime taxation and business structuring. Their deep understanding of the law has helped many clients claim legitimate deductions while staying fully compliant with IRS regulations.

With seasoned experts on your side, you can be confident your depreciation claims are well-documented, your business-use case is solid, and you're making the most of every tax benefit available. Their insight can make all the difference between a smart strategy and an avoidable tax issue.

Refer to our Marine Directory to browse through CPA firms who may be of interest to you.

Your Next Step

The 2025 legislation offers a new opportunity to leverage significant tax planning opportunities with your next yacht purchase.

If you've been considering yacht ownership, there has never been a better time to act.

Contact Current Yachts today to explore how we can help you find the perfect vessel and structure your purchase for maximum tax efficiency. Let us connect you with the right CPA firm to ensure your yacht investment delivers both lifestyle rewards and significant tax benefits.

Your dream yacht isn't just a luxury: it's a smart business decision.