Owning a boat is one of life's greatest joys. But sometimes feels like one of the most expenseive as well! Creating a non-equity partnership for your boat allows you to reduce your ownership costs while continuing to enjoy it on a regular basis. You retain full ownership and have complete flexibility to decide how often and how long to make your boat available.
In addition to reducing your out of pocket expenses, there can also be tax benefits from creating a boat partnership. There are two main ways you can structure your partnership to receive preferential tax treatment:
Boat as a Business
When structuring your boat partnership as a business you are entitled to deduct expenses and depreciate the value of your boat. There are specific requirements for how you setup the partnership and participate in the business. There are also some restrictions around the use of your boat.
Another way to structure your boat partnership is the same as if you owned a vacation home. In this model, you are entitled to deduct expenses in proportion to how much time it is shared. There are less restrictions with this structure, but, also potentially less savings.
However you choose to structure your partnership, SF Boat Partners make the process easy for you by: