If so, check in with us to get an independent and unbiased look at this Yacht Business, Revenue Sharing and Guaranteed Income programs. Not only do we advise clients on the “Boat as a Business” program, but have personally benefited from it with our own yacht businesses. In our experience, yacht charter income together with tax savings, is a great way to reduce the cost of yacht ownership.
It is the perfect opportunity for anyone looking to buy a new yacht at a substantial saving! We happily share our personal experience, as well as that of our clients, with potential yacht buyers!
Stephen Cockcroft is an expert in both operating a boat business and setting up a yacht charter business so that you can take advantage of substantial tax advantages and generate income from operations.
Yacht Business Owner Benefits
- This program generates substantial revenue and together with tax advantages, results in ownership of a luxury yacht at a substantial discount
- Catamaran Guru has close relationships with select boutique charter fleets with flexible yacht ownership programs with outstanding maintenance, management and ACCOUNTABILITY from start to finish
- All catamaran brands available for this program – Fountaine Pajot, Lagoon, Bali, Catana, Nautitech, and others
- Yacht customization to your specifications including owner’s versions
- Flexible duration of the charter management terms – not locked into a 5-year term
- Unlimited options for generating revenue and results match financials offered by our charter partners
- Seamless management for warranty and maintenance from the time of purchase to the sale of your boat
- Worldwide reciprocal owner use available through The Yacht Exchange
Don’t be fooled! Although the acquisition of a new yacht may be an effective business tool to take advantage of these tax rules, the tax benefits must be carefully planned, documented, and implemented to make sure that it can withstand scrutiny. While you want to make sure that you buy a yacht that will suit your individual financial and personal goals, you also want to make sure that your “yacht charter business” is set up in compliance with tax authorities.
PERFORMANCE OR INCOME SHARING CHARTER PROGRAM
The Performance Program is designed to be an income sharing relationship. The owner is credited for the full net charter income after booking commissions and the charter company bills the owner for services. While this program definitely yields the owner more income than a guaranteed income program, it requires a more personal involvement.
Highlights of the Revenue Sharing Program
- Revenue Split: With the Performance Program, there is typically a split of the net charter income. That split usually ranges from 65% Owner – 35% Charter Company, to 80% to the owner and 20% to the Charter Company. The reality, often misunderstood by the boat buyer, is that the split is almost completely irrelevant. Truth is, only the bottom line is relevant. It is what the owner is charged for after the split (costs of the price of services, booking commission paid to charter brokers, etc.) that truly determines the bottom line and not the split formula.
- Expenses: The owner needs to know what the costs are to run the boat, and how they will be billed, e.g. hourly labor rate, dockage electricity, turn around costs, insurance or any other fixed or variable expenses the owner will be responsible to pay for. It is very important to analyze these costs to see what the actual bottom line income is projected to be.
- Income: Depending on the type of boat, configuration and location, the performance program will yield about 30% higher income than the guaranteed program to the owner, which is a substantial.
- Maintenance: Typically, there is no phase-out for yachts in this program. The reason for this is because if the maintenance is being done regularly and diligently, the yacht should be in good condition at all times, including the end of program.
Guaranteed Income Management Program
Charter companies make this program sound completely worry-free and simple. We have done the research, collected the data and frankly, this program is just not viable anymore. Few, if any of the charter management companies offer this program anymore, so we will not delve too deep into this program.
Guaranteed Income program might be a good fit for you
- Guaranteed 7-8% income programs available
- Professional maintenance and phase-out program at end of program
- Worldwide reciprocal owner use with locations all over the world
- Choice of yachts and equipment: Lagoon, Fountaine Pajot, Bali, Catana, and more
Yacht Ownership Testimonials & Success Stories
With hundreds of satisfied clients in yacht ownership programs, tailored to suit their needs, Stephen can help you achieve your dream too. If you are in the market for a catamaran, make sure that you discuss your options with Stephen.
Some of Our Yacht Owners In These Programs
Here are just a few of the boat businesses we helped catamaran buyers set up:
- S/V Location: This Bali 5.4 is in a Crewed Charter in the Bahamas
- S/V Belle Vie: This Bali 4.8 is in the Dream Caribbean Blue fleet, a full service management luxury company.
- S/V Emysa: This Leopard 58 is in the Dream Caribbean Blue fleet, a full service management luxury company.
- S/V SailLuna: This Lagoon 450 is self operated by her crew and owners and is one of the most successful crewed charter catamarans in the BVI.
- S/V American Honey: This Bali 4.4 is in the very unique “captain by day, bareboat by night” revenue sharing program with Cruise Abaco in the Bahamas.
- S/V Resolute: This Bali 4.4 is in the same revenue sharing program with Cruise Abaco and migrates to our charter partner in Annapolis for the summer.
- sailallende.com: This Fountaine Pajot Helia 44 is in Crewed Yacht charter in the BVI. This young couple is making big waves in the industry with exceptional service.
- catamaranguru.com: Our own catamaran, Zuri, a Bali 5.4 (previously a Lagoon 450S), is in the program in the U.S. doing mostly instructional charters, exhibits at boat shows, and other demonstrations at events and for prospective buyers.
- irishroversailing.com: UPDATE: NOW SUCCESSFULLY RETIRED. This Fountaine Pajot Lipari 41 operated between Annapolis in the summer and the Bahamas in the winter as a successful bareboat business.
- sailbigdog2.com: UPDATE: NOW SUCCESSFULLY RETIRED. Big Dog ii was a Lagoon 400 that operates in the Bahamas as a bareboat yacht business and is fully booked for most of the season.
- LadyKatlo.com: UPDATE: NOW SUCCESSFULLY RETIRED. This is a Lagoon 620 is in the Luxury Crewed Ownership program doing business in the BVI.
