How Americans Can Buy Tax-Free Luxury Yachts
A little-known tax rule is letting wealthy Americans write off the cost of luxury assets—including yachts, jets, and even racehorses—if they can prove the purchase is for business use.
The provision, called bonus depreciation, was made permanent under Donald Trump’s “One Big Beautiful Bill Act.” It allows businesses to deduct 100% of the purchase price of eligible assets in the first year. That means a yacht bought partly for charter or corporate use could qualify as a massive tax break.
The rule applies whether buyers pay in full or finance with debt. For example, someone putting down just 10% on a $200,000 luxury car could still deduct the entire cost and save up to $80,000 in taxes.
But there’s a catch: assets must be used for business at least half the time. The IRS has already flagged jets and yachts for scrutiny, so buyers need to prove legitimate use to keep their deductions.
Bottom line: With bonus depreciation restored, Americans can buy yachts, jets, and other luxury items at a steep tax discount - if they can show it’s not just for pleasure.
See the 2025 Model Superyachts and 2025 Model Sailing Superyachts in our database.
