Private Air New York

www.privateairny.com Private Air | Winter 2025/2026 46 Owners must be prepared to document business intent, maintain usage logs, and consult maritime and tax counsel in advance of acquisition. Done right, the benefits are robust. Done sloppily, and the IRS may come knocking. For yacht brokers and builders, the OBBBA's passage is expected to buoy demand, particularly for inventory that can be customized for business forward functionality. Expect a wave of interest from professionals in entertainment, consulting, tech, and luxury services, where clients facing travel and hosted events aboard a yacht satisfy both brand and business objectives. ere is also a macroeconomic angle. By treating yachts as productive business assets, the legislation supports U.S. shipyards, crew staffing, marine service providers, and coastal economies that rely on the luxury yachting ecosystem. It is, in effect, a stimulus that floats. Looking forward, savvy investors are likely to view this as an inflection point. While bonus depreciation was originally introduced under the Tax Cuts and Jobs Act and scheduled to phase down, OBBBA restores it as a permanent fixture, bringing long term confidence to high value asset planning. For those with liquidity, vision, and legitimate business use, the horizon looks favorable. In a world where timing is everything and tax structures are increasingly complex; the yacht is no longer just a toy. It is a tool. And with the stroke of a legislative pen, it has just become one of the most tax efficient assets in the luxury landscape. To explore qualifying strategies, consult your tax attorney or wealth advisor. Documentation, intent, and smart structuring remain key to smooth sailing. Yachts vs Jets: Bonus Depreciation AIRCRAFT •  Must be used for business travel or charter •  High regulatory scrutiny from FAA and IRS •  Bonus depreciation typically used alongside Part 91/135 operations •  Logbooks and flight plans essential for audit defense YACHTS •  Must serve a legitimate business purpose (charter, client use, fractional ownership, etc.) •  More flexibility in usage documentation, but increased scrutiny expected •  Bonus depreciation applies equally to new and used vessels •  Logbooks, charter schedules, and usage logs strongly recommended

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