Based in Hollywood, minutes from the Fort Lauderdale marinas. We handle the books, Florida sales and use tax questions and year-round tax planning for yacht owners, charter operators, brokerages, boatyards and marine service companies.
Florida licensed CPA. Fixed fees, quoted in writing before any work starts.
Personal and chartered vessels, often held in an LLC, with purchase, repair and operating costs that each carry their own tax rules.
Per-vessel profit and loss, owner statements, crew payroll, and sales tax on charter income handled correctly.
Escrow and deposit accounting, commission splits with co-brokers, and books that agree with every closing statement.
Job costing on refits and repairs, progress billing and deposits, parts inventory, and sales tax on repair work.
From the Florida Department of Revenue and Florida Statutes. The details of your purchase decide which rules apply.
Florida taxes a bareboat charter differently from a charter where the owner supplies the captain and crew and keeps control of the vessel. How the charter agreement is written matters as much as the income.
Under the federal passive activity rules, a charter business where the average customer use is 7 days or less is not treated as a rental. Whether losses are usable then depends on how much you actually participate.
Costs of a boat used to entertain clients or friends are generally not deductible, even when the boat is owned by your business. Business use has to be real and documented.
Holding the yacht in an LLC is common for liability and privacy. Without separate accounts and records for that LLC, it gives you much less protection and makes every tax question harder.
A boat with sleeping, cooking and toilet facilities can qualify as a second home for the mortgage interest deduction. It only helps if the loan and the records are set up for it.
The $60,000 cap applies to each repair. How work is invoiced and documented affects what tax you pay and what you can prove later.
Sometimes, mostly when it is part of a real charter business run for profit, or when the second home mortgage interest rules apply. Personal and entertainment use is generally not deductible. The answer depends on how the boat is used and documented.
Possibly. If the boat comes to Florida within 6 months of purchase, Florida use tax can apply, capped at $18,000, with credit for sales tax paid to the other state. If it was used elsewhere for 6 months or more first, Florida generally presumes it was not bought for use here.
Often, for liability and privacy, but the tax treatment depends on how the LLC is set up and used. We work with your maritime attorney on structure and handle the accounting and returns once it is in place.
Foreign flagging and offshore ownership raise legal questions that belong with a maritime attorney. We handle the U.S. tax and accounting side and coordinate with them.
Yes. Many owners keep a boat in Florida and live elsewhere for part of the year. We work by video and phone and meet in person in South Florida.
Get a starting figure in writing, or talk through your boat or business with Philip first.
