First I want to wish everyone a wonderful 2016 full of success and wonderful boating
So I've been thinking about how best to utilize my investment in my sailboat in respect of United States taxation.
I am lucky to be the owner (founder and majority shareholder) of a high value publicly traded company. I intend to pull the trigger on a purchase
this year that will be between $US1.5 to $US2 million. I'm particularly interested in either the Lagoon
560, 620 and now the to be released this year the Lagoon
77. I am particular to the Lagoon range because of their layout which for me in my opinion has the best layout for entertaining. But I digress.
And before I get jumped on for posting
in CF rather than going to one of my highly paid corporate attorneys I am posting
her in the chance that other boaters have already looked at this question. Of course whatever direction tax wise I decide to go in will be done with some pretty sound legal
and accounting advice as well. But as a start I think it prudent to brain storm some ideas amongst other boaters who may have I am sure, some great ideas to consider.
My first thought is having seen how a well known corporate chief who is an ardent sailor gas his boats spinnaker
advertising his company. I would think that he has an advertising agreement with his company for the advertising on his sailboat. What would be a reasonable charge for such name advertising placement? I suppose I could ask a national big advertising agency for a written opinion and as I type I think this will be a good idea anyway. Having an independent cost basis would be a good insurance
in case of IRS questions.
So I think I have one tax benefit that I could utilize. There could be some push back in saying that for it to be legitimate advertising it needs to get reasonable exposure. Such as sailing around Manhattan for part of the summer with company name on the Asymmetrical and possibly the mainsail
. Also look at getting some photos of the branded sailboat in some trade
journals as part of the public company branding strategy. Seems to work for Rolex.
Along the same lines of developing exposure to justify corporate expenditure, perhaps look at developing a web channel for corporate sponsored production vessels races. Executed properly this could be packaged for crossover into a cable channel show.
I know of the second home write offs but somehow I don't think they will be as good as the corporate sponsorship approach. I could of course be wrong on this.
Then there is the corporate office. If I set the sailboat cruising catamaran
up as an office with all the high tech comma gear
along with meeting space and I sail it to New York
for meetings and also parts
of the med and the UK for meetings I think this could qualify as an office expense much like a physical office. I am sure I would gave to stay away from the Caribbean
but if I do sail there I would have to write it in a log as for pleasure and percentage wise take that off my overall expenditure. Not a bad idea in itself to show that I am being honest in separating business from pleasure.
I would really appreciate some feedback or further suggestions. Not criticism for looking at legal
ways of managing my affairs.