Private Air New York

www.privateairny.com Private Air | Winter 2025/2026 44 WEALTH MANAGEMENT With 100% bonus depreciation reinstated under the One Big Beautiful Bill Act, business-qualified yachts now offer owners powerful new opportunities for tax efficiency, capital preservation, and lifestyle expansion. Words By: Michael Speed Photography By: Jeff Brown F or ultra-high-net-worth individuals and business owners with a taste for open water, the latest development out of Washington quietly rewrites the rulebook on maritime asset strategy. e recently signed One Big Beautiful Bill Act (OBBBA) has permanently reinstated 100% bonus depreciation for qualifying business assets, including yachts, offering a powerful incentive for those navigating both ocean and balance sheet. Under the new legislation, effective for new and used yachts placed into service after January 19, 2025, owners using the vessel for a bona fide business purpose may immediately depreciate the entire cost of the asset in the first year. at means a multi-million-dollar yacht can now deliver a first-year deduction equal to its full purchase price, creating substantial tax savings and freeing up liquidity for reinvestment. To qualify, the yacht must be used in a legitimate business capacity: charter operations, fractional ownership programs, or company related travel are common examples. Personal use must be minimal and well documented. For those already employing aviation tax strategies with private aircraft, the yacht version is not so different, only wetter. is is not a loophole. It is legislative intent aimed at encouraging investment, stimulating luxury industries, and recognizing the economic impact of high value asset deployment. For businesses built around mobility, hospitality, or high- end services, a yacht is no longer just a lifestyle statement; it is a balance sheet tool. From a finance perspective, the implications are significant. A yacht that might once have required years of amortization can now deliver immediate tax offset. Paired with intelligent financing, such as interest- only periods or asset-based lending, buyers can dramatically reduce their effective cost of acquisition. e result is a faster ROI timeline and a more agile ownership profile. Family offices and wealth advisors are already taking note. When deployed strategically, 100% bonus depreciation does more than lower tax liability. It becomes a timing instrument, allowing clients to align large purchases with high income years, capital gains events, or windfalls. In jurisdictions with high effective tax rates, the savings can easily run into seven figures. Of course, with opportunity comes scrutiny. As with all tax advantaged strategies, compliance is paramount. FULL THROTTLE INVESTMENT

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