It is so exciting to own a boat or any luxury item. When personal use is minimal you can make that as a business asset to ensure optimal utilization of the asset throughout the year. Also owning them as a business asset will help in transportation so that you can combine the usage with an existing business or start a new line focusing on tourism and travel. Follow the below tips for buying a boat or any luxury item as a business asset:
Income earning capacity: Before making the buying decision assess the income earning capacity of the asset. Not that you will start earning profits from day one. But you should be able to reap back the amount invested within a reasonable time. Also, take into account how much you need to invest to remodel the asset. Profits should be sufficient to cover maintenance costs.
Durability: Check on the condition of the asset. You are buying the asset to use it for business purposes. Hence the asset should be in a curable condition. If you do not have prior experience in buying a boat, there is no need to worry. Avail the services of 4 yacht who provide A to Z expert guidance for the same.
Used Assets: It is better to buy used assets instead of shelling out more money on brand new ones.
Tax: While buying boat or luxury item as business assets check the local law as to what tax benefits you can get. You can show the interest on loans taken for this purpose and the depreciation as expenses.
Proper documentation: Ensure proper documentation while buying the goods. The previous ownership title should be clean. Take legal advice regarding terms and conditions in sale deed. Ensure that you do not face any legal issues after the purchase. The conditions in the agreement must not be ambiguous.