Tax Planning May Be Part of the 2026 Ownership Conversation

At MJM Yachts, we know that a purchase decision is rarely about one factor alone. Design, craftsmanship, performance, comfort, and long-term ownership experience all matter. In 2026, for some buyers, tax planning may also be part of that conversation. Working closely with our authorized dealer network, we are seeing more prospective owners ask whether current federal tax rules may create meaningful advantages when a yacht is purchased and placed in service for legitimate business use.

Important Note: This article is intended for general informational purposes only and should not be considered tax advice. Before making any yacht purchase or structuring ownership for potential tax benefits, please consult a qualified tax professional to understand how these rules may apply to your specific situation.

Why Buyers Are Asking

The interest is easy to understand. Current IRS guidance provides for 100% bonus depreciation on qualifying property acquired and placed in service after January 19, 2025. IRS instructions for 2025 also list a maximum Section 179 deduction of $2.5 million, with a phaseout that begins once total qualifying purchases exceed $4 million. For qualified buyers with the right structure and the right use case, those provisions can make timing and ownership planning especially important.

Business Use Comes First

At MJM Yachts, we work closely with our authorized dealers to help buyers explore the full ownership picture. For those considering legitimate business use, today’s tax rules may create meaningful planning opportunities, but the details matter. The structure, the percentage of business use, the timing of when the yacht is placed in service, and the quality of the documentation all play an important role. IRS instructions for Form 4562 state that Section 179 generally applies to property used more than 50% in a trade or business, and benefits may be recaptured if business use later falls below that threshold.

 

What May Matter Most

For some buyers, bonus depreciation is the provision drawing the most attention. For others, Section 179 may also be part of the discussion. Either way, the opportunity depends on the buyer’s specific facts and should be evaluated with qualified tax counsel before a purchase is made.

Why Planning Still Matters

It is also worth noting that loss limitations remain part of the equation. For taxable years beginning in 2026, the IRS published the excess business loss threshold at $256,000 for single filers and $512,000 for joint returns, which can affect how much loss is currently usable.

The MJM Perspective

The MJM perspective is simple: smart ownership begins with informed planning. If you are considering a new MJM in 2026, your dealer can help you explore the right model, the right ownership path, and the right next steps with your professional advisors.

Contact Us

To learn more, contact your authorized MJM dealer to start the conversation. They can help you explore available models, answer ownership questions, and guide you through the process of determining what may make the most sense for your needs.

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