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Yacht Sales Contracts, Boat Taxes and Duties: Some Basic Tips

Yacht Purchase and sale documents Creating Sales Documents For Catamaran Sales

Whether you buy a brand new catamaran or a used catamaran directly from the owner, the best way to protect both parties is to put the terms of the sale in writing. This will eliminate problems that could later turn a seemingly simple deal into a nightmare. A legal document will clearly list the intentions of the buyer and seller by outlining the obligations of each party, as well as spelling out the obligations and time frame for each party involved.

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bvi crewed charter business' cruisenautic logo Adventurous Couple, Kate and Cyrus Start a Crewed BVI Yacht Charter Business

Trading land gigs for adventures by sea. CruiseNautic is not your ordinary sail charter!

We interviewed Kate and Cyrus of CruiseNautic, two of our recent yacht buyers. After taking ownership in France of their 2019 Lagoon 42, they will sail to their crewed charter destination in the BVI.

Kate’s background is in the arts covering design, cuisine, and music. She’s rocked the Minneapolis music scene with a variety of top artists, her guitar and mic are always on hand for emergency entertainment relief. Cyrus has a background in engineering and woodworking and is an expert at planning the perfect adventure. He can also bake up a dangerously delicious pie. They both hold a USCG Masters License.

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Passion for Yachts & Sailing? Turn It Into a Business

Boat BusinessBusinesses have been born from hobbies and personal interests since commerce began. If you look around, you will see it everywhere. Baseball? Horses? Cars? Photography? All great passions that often lead to even greater business ideas. If you have saltwater in your veins like we do, you probably have a dream of owning a luxury yacht to explore and relax aboard on your weekends or even extended cruising. But, like many of the best leisure activities, the privilege of owning and enjoying a yacht comes with a hefty price tag.

But, as with other expensive hobbies, astute business people have created ways that you can turn your boat into a business. A catamaran sailing yacht or catamaran power yacht can be much more than just an expensive toy by turning it into a business with tax deductions, depreciation, exit strategy, etc. all planned out.

A yacht business can be done successfully provided you set it up correctly to comply with IRS rules, and it’s perfectly legal. To accomplish this, you should purchase your new yacht through a limited partnership or limited liability corporation rather than a foreign corporation and there are certain rules you must follow to qualify for the tax deductions and reap all the financial planning benefits. It can be done and we help people do it every day!

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New Yachts vs Pre-Owned Yachts & Charter Yachts

There is always much debate about which is better to buy: New or Used Yachts?

There are pros and cons to each option. Buying a new yacht does not guarantee a trouble free yacht. Yes, there may be warranties to cover repairs, but even that does not ensure a hassle-free yacht. And buying a new yacht results in a big depreciation of the vessel the minute the yacht hits the water.

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Top Reasons Your Boat Listing Will Not Sell

Selling a catamaran

The Catamaran Is Priced Wrong

The right price is a function of supply and demand. But how do you know how "in demand" your boat type and model is? How do you know if the location matters for your boat? What are others asking for similar boats? It takes experience to know the answers to these questions as well as access to a large database of boat listings. A yacht broker earns their commission by knowing how to use the information they have to price your boat fairly...for you and for buyers.

A broker can help you objectively assess the condition and features of your boat as well as find comparable boats so that you have a realistic view of not only price, but how long the boat is likely to be on the market. Pricing your boat correctly from the start may save you months of insurance, dockage rental, maintenance, and cleaning fees, insurance costs etc. Do not take any brokers advice personally, but see it as the business transaction that it is.

See here what Catamaran Guru™ can do for you as a selling broker.

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