Get the Flash Player to see this rotator.

A Partner You Can Trust

Choosing the right charter for you

Placing a boat into charter or a fractional boat club like NauticShare has many benefits. Make sure to do your due diligence when selecting a charter or fractional company. No two companies are the same, and the mismanagement of your boat can be detrimental to your access and enjoyment, not to mention resale.

A company such as NauticShare offers to pay your slip fees, insurance and routine maintenance. In addition you actually receive income based on membership sales on your boat. In most cases, your boats income will surpass your mortgage payment, and you receive a free membership to your own yacht.

A typical charter company gives the boat owner typically 40 percent of the charter revenue. The charter company does not provide any guarantee for income or maintenance, just a percentage of the gross charter revenue.

Below are some examples of the tax and cash-flow advantages to placing your boat into a Charter Company. It is imperative you consult with your tax advisor or CPA on the items below:

  • 1. You are able to depreciate the boat (10-year accelerated depreciation MACRS).
  • 2. Obtain a Section 179 expense deduction in the year of acquisition.
  • 3. You are able to deduct all ordinary and necessary charter-related expense (berthing, insurance, maintenance, interest, etc.).
  • 4. The boat will receive care and management by a professional staff (varies with charter company).
  • 5. You receive the income from Charter — 40 percent.
  • 6. You and those that charter your boat will receive good training using the American Sailing Association (ASA) Training Program.
  • 7. You will have the opportunity to dramatically reduce the time it takes to pay off your boat.
  • 8. There will be a dramatic reduction in ownership expenses.
  • 9. There may be an easier access to slips, an increasingly scarce commodity.

This is just a list of examples of the benefits of placing your boat into a charter fleet. The above examples are not recommendations from Nautic Yachts Sales. Please consult your CPA or tax advisor on your specific situation.

"I think it is a great value for someone who wants to own a boat, but for a lot of reasons the 'time' is not right."

— Neal P., Member since 2004    |    Read more