Private yacht ownership is becoming less and less affordable. The cost of new boats is on the rise. Additionally, the cost of docking, maintaining and insuring a private yacht is becoming prohibitive. With the busy lifestyles of today, many private yacht owners don't have a chance to use their boats as often as they had planned. Factors such as maintenance, weather or personal obligations often interfere in our boating plans.

Charter yacht ownership is the answer for many modern-day Yachtsmen. This program offers boat owners the added benefits of full-time management of their yacht, professional maintenance, and income to offset the cost of ownership. And we can even have the boat ready and waiting when the owner does want to use it.

There are still tax advantages associated with charter yacht ownership, including deferral of state sales tax on purchase, and deductions for operating expenses, depreciation, and interest against your charter revenues.

In most cases, yacht chartering will be considered a "passive" activity under the new tax laws. You may obtain a further tax benefit of a loss for tax purposes from the charter of your yacht if you have other passive income or upon the disposition of your yacht in the future, since any unused losses carry over. Please consult your personal tax advisor.

The following proforma shows an illustration that is an example of charter ownership.

1. Cost of Yacht - Includes fully-equipped yacht with all SFY required charter features and equipment. Also includes commissioning and delivery of yacht to SFY Marina.
2. Sales Tax - Florida Sales Tax is deferred on yachts being placed into bareboat charter service.
3. Total Cost of Yacht - The sales price, plus equipment, commissioning, delivery and tax.
4. Down Payment - Based on 20% of total cost of yacht, plus sales tax if applicable.
5. Financed Amount - Total cost of yacht minus the down payment.
6. Monthly Payment - Assumes 15 year simple-interest loan at 10% annual interest.
7. Estimated Annual Payment - Monthly payment amount times 12 months.
8. Owner Gross Charter Revenues - Based on 50% of charter revenues for average number of charter weeks per year (22 weeks) (Based on $2,600 per week high season rate)
9. Referral Income - Commission to the Owner based on two charter referrals per year at 10%. Based on a weekly charter rate of $2000.
10. Total Income - Total owner gross charter revenues and referral income.
11. Insurance - Yacht is covered under a Fleet Policy which includes coverage for full value on the hull and machinery, based on the purchase price, plus P&I (liability) coverage in the amount of $300,000. Optional Breach of Warranty and Confiscation coverage available.
12. Dockage - Based on 35 foot yacht at $7.00 per foot per month on an annual contract basis. ($7.50 per foot per month for private yacht
13. Annual Haul Out - Projected annualized expense. (once every 18-24 months) haul out and bottom painting. Includes full service to cutlass bearings, seacocks and a broad range of exterior service. Paint is high quality marine bottom paint. Refer to SFY haulout standards/check list procedure.
14. Maintenance - Includes parts and labor for routine yacht maintenance and service. This figure can vary widely depending on the yacht's type and equipment. Based on an average of 15% of the value of the yacht.
15. Total Operating Expense - Total of items 11-14
16. Operating Profit/Loss - The difference between the Owner's gross revenues and the Owner's total expense.
17. Annual Payments (P&I) -Total annual payment, principle and interest (Item #7 above).
18. Net Cash Flow Before Taxes - Total of Owner Gross Revenues, minus Operating Expenses and Annual Payments.
19. Value of Owner Use (2 weeks) - Based on 2 weeks owner usage at average charter rate of $2600/week.
20. Total Operating Profit/Loss - Total of Net Cash Flow plus Value of Owner Use.