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INDEX:
A short video introduction,
click here.
Special fact filled seminar (In Annapolis, or
on-line).
Schedule and sign up! Details here.
Live, or on the web--
6.
How to get the real facts
Request more information and a sample
business plan.
7. Q&A
Page Here.
Go to our Q&A page here and find out why everything is not always as it
first appears. Link here.
Ready
to act now, answer a few questions and you're on your way?
or
Call 410-263-2311
| Contact BYA live... |
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410-263-2311
Justice, Learnard Hand
said:
"There is nothing sinister in arranging one's affairs as to keep
taxes as low as possible...for nobody owes any public duty to pay more
than the law demands."
Let's Go Cruising
is our affiliate who
 manages
your boat...
Click
on the image to the left to see a short video.
Cash Flow
A simplified look at Cash Flow...
Expenses
Return
This is a simplified look at the
costs and return with our Boat as a business™ program.
What others have said...
"Let's Go Cruising has been managing my 36' Jeanneau, Lady Jane, for the
past six years. During this time, they have been consistently courteous,
helpful, ready and willing to do anything to make the yacht management
experience pleasurable. Every time that I wanted to sail Lady Jane, she
was always ready to sail, very clean, and well maintained. As far as
I'm concerned this is the only way to really enjoy owning a yacht. I am
extremely grateful for the service that the folks at Let's Go Cruising
have provided me over the years and I highly recommend them to
everyone."
Sincerely,
Bill
D. Owner "Lady Jane"
I
arranged a teleconference with TH (BYA's recommended CPA) at my
CPA's office. My CPA had several questions, since he was
unfamiliar with the " Boat as a business™" set-up. Terry
was direct, easy to understand and polite. Speaking with
him was of great benefit and definitely a smart suggestion on
your part. My CPA and I, both, feel confident in my business
plan.
Testimonials
 The Funks
are just one example of a couple that used our Boat as a
business™ plan
to gain experience and equity for 5 years, and then go cruising... The
Funks continue their adventurous cruise on their Fountaine Pajot.
 Keith
Cressman bought a Jeanneau 43DS from us at the end of 04. He recently
attended our owner’s reception in Annapolis (on April 9th.).
I asked him what his
tax advisor said about our program:
“You can qualify
for active tax advantages… .This is the best idea that I’ve ever seen!”
When this plan is set
up right it offers substantial tax advantages. We have the knowledge to
show you, and your accountant how to set up a program that works!
 Let's
fix this now. You are probably already paying for a new boat--you just
don't have it. You're paying for it with taxes that could be applied,
instead to build equity in a new boat. |
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For Power or Sail. Monohull or Catamaran...
Setting your boat up as a business? This is a unique idea--one that several tax advisers
have commented on: "Innovative.", "This is the first time I have seen one
of these programs set up so it will actually work.", "This is the best
idea I've seen". "...(a) home based business is one of the few legal tax
shelters left." (Sandy Bodkin-tax advisor) Find out how to incorporate this important approach into
your boat owning plans. Your retirement plan. You can own a boat in 1/3
the time for 1/3 the cost--while you enjoy it as much as you want!
2. Psst... Want to
know a secret?
Psst... Want to know a secret?
Get the boat that you want, faster--when
you use the Secret. You probably used
the secret when you chose your life partner, when you made
the most money you ever did, and when you recovered from an
illness. You'll need all of it's powerful advantages when
you decide to join the boating lifestyle.
The secret is why 1% of Americans hold 96% of America's
wealth.
Insider information: Find out just what the newest round of tax
advantages actually are.
Click
here.
Getting what you deserve!
 Don't let this
happen to you! Don't keep getting the old shake down with nothing to show
for your hard earned, tax dollars. You're
probably already paying for a new boat, you just don't
have it--but with the Tax Relief Act of 2003, Uncle Sam actually wants to
subsidize the costs of ownership for a new boat...
If you're ready to spend about 10 minutes of your time
to learn about this important option, scroll down--otherwise, bookmark
this page and come back when you have the time.
 What if you could own a boat with no out of pocket costs at all? Own a new
boat outright in 5 years for 1/4the cost that a conventional purchaser
would pay (Own in 1/4 the time for 1/4 the cost)? What if you could enjoy
the benefits of new boat ownership with total control (just like a private
owner), use your boat as much as you like whenever you like, not just any
boat, or a charter boat, but exactly the kind of boat that totally suits
your needs—for less than the cost of settling for: a brokerage boat,
fractional ownership, time sharing or even chartering?
Would you be interested in knowing more?
Go to the tax
calculator here. (This will take you off of our page, so simply shut
down the calculator to come back.)
Return to index
By simply setting your boat up as a business. When you find out how
ridiculously simple this concept is, you’ll wonder why everyone doesn’t do
this!
 In fact, there are lots of advantages to having your own business. If you
don’t already have your own business you should. If you do, you already
know the advantages. There are tax benefits galore if you set up a
business. Everything from special retirement account provisions, to
employing your family members. (I’ll provide a link later for more
details.)
Setting your boat up as a business is particularly attractive because of
the generous depreciation allowances and the benefits assigned by the Tax
Relief Act of 2003—which are still available; you can still qualify. More on
all of this later.
So, why doesn’t
everyone do this?
For the same reason that everyone doesn’t jump on a stock that’s going to
sky rocket—at the beginning? They just don’t have the inside information,
a guru, an advisor, who can explain the ins and outs of this particular
strategy and point them in the right direction. Now you do! Just like the
almost 680 others that I have helped before you. This is not a new or
unique idea, but it is a unique application of a number of successful
strategies that most people, including most tax advisors just haven’t
taken the time to figure out. Too bad for them. Great for you—you are
about to become a member of a very exclusive club consisting of those who
truly understand the advantages of setting their boat up as a business.
Return to index
Am I qualified for membership in this
exclusive club?
Like with all great things you find out about, you don’t get something for
nothing! The ideal candidate should be a successful individual, who wants
a boat regardless of its profit or tax advantage potential. (S)he should
be able to qualify for financing whether the boat is purchased for private
pleasure or set up as a business.
(S)he
should simply wish to explore this alternative means of ownership in order
to:
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Preserve capital for
other investments.
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Own a boat outright
for the least possible costs at some pre-planned, future time—perhaps as
a part of retirement planning.
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Convert taxes
normally paid, into boat equity.
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Own your boat in 1/4 the
time for 1/4 the cost--For instance, own in 5 years for the same out of
pocket cost as a conventional purchaser would pay for 20.
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Eliminate or reduce the
monthly cost of ownership while you...
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Have the
unrestricted use of the boat as much as you want, while someone else
professionally manages the care and maintenance, someone else cleans it
and always has it ready for you.
Doesn’t this sound like the ideal partner? This guy offers to do all the
work, while you get all of the equity, enjoyment and tax advantages. We’re
offering to be that partner! All of the costs, including those of this
professional management are covered by the income and tax advantages you
earn when you’re not using the boat. (Assumes you’re willing to give up
5-9 weeks a year in order to earn income and qualify for tax
advantages—more on all of this later.)
Our owners
recently took a survey to help us understand their motivations. You can
see it, and, in effect, take a test to see if your needs and concerns
match theirs—or not… Can you pass this test?
http://www.bayacht.com/aaa/nl-artic/DecisionMaker.xls
(NOTE: If
you can’t download this Microsoft Excel document, see the results in a pdf
document at:
http://www.bayacht.com/aaa/nl-artic/DecisionMaker.pdf
You don’t need any previous business experience, or need to have owned a
business—though if you have or do, you probably already understand the
advantages of owning your own business and will understand many of the tax
issues without further explanation.
Return to index |
The Road You're On
 People
who don't own a business only imagine the rewards. They don't know the
risks. They don't know that owning a business means you have to talk to
people who are knowledgeable about the specific opportunity that you are
considering. Who understand that the best outcome is obtained by setting
your business up so that it doesn't attract undue scrutiny--from the
beginning. There are not always people you can talk to. It's hard to
find advisors you really trust.
We have helped over 600 people set their
 boat up as a business.
People like Joanne, above, and Joe to the left. (Click on Joe's picture to
see the after picture!) Living ordinary lives, they have been transformed
by this exciting and fun new business. We have discussed the pros and cons with 100's of
tax advisors. Seen, in the real world, what works and what doesn't. To the
best of our knowledge, in the past 15 years, we have only had one client
audited--and he simply didn't follow the guidelines that we suggested.
(Even at that, he passed the audit with flying colors and not one single
dollar deducted!)
Go to our Q&A page here and find out why everything is not always as it
first appears. Link here.
Copy
of a letter to a client concerning his disappointment with marine banks,
and uncooperative tax advisors.
More information here.
What happens when you start a business wrapped around your boat?
You get tax advantages--generally you can
write off all of your expenses, and depreciate up to about 65% of your
boat in the first 5 years. This is an accountants dream! (S)he can use
these advantages flexibly to adjust your taxes dramatically down! (If you
don't have a savvy tax advisor--we can provide one!)
There are other
advantages to owning a business as I mentioned—employing family members,
setting up retirement accounts, etc. Advantages not generally available to
those conventionally employed. For more, see:
Link to general business tax advantages:
http://www.bayacht.com/aaa/nl-artic/ArticleWhyaBusiness.htm
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It’s really simple. Let’s imagine that instead of a boat business you
decide to set up a Shoe Store business.
As we go along, I’ll make the boat analogy where appropriate, but
basically everything works the same way in any business, including the
boat business.
-
First you decide on
the format: Sole proprietorship, partnership, LLC, Sub S corporation or
“C” Corporation. Generally most people elect the LLC or Sub S format.
Both of these allow tax advantages to flow through to your individual
tax returns, and offer the same liability protection as the “C”
Corporation. (This discussion is meant to be brief so I won’t go into
all of the nuances of the different formats—however we can provide you
more specific advice when the time comes.)
-
Now that you’ve set
up your LLC, (we can do this for you in about 15 minutes—and even have
“shelf corporations” all ready to go!) you set up a business checking
account to run all of your transactions through.
-
The tax issues.
(Back to our Shoe store example.) Let’s say that you lease store space,
but purchase fixtures and a delivery van for a total of $150,000. You
take a loan out for this amount. So what are the tax consequences so
far?
Thanks to the Tax
Relief Act of 2003, in effect for a limited time, still—you get an
arbitrary gift from IRS—you can take from $0 to $108,000 as a 179 expense
allowance in the year (this year) you acquire the business assets. (In the
case of the boat, up to $108,000 as long as the boat costs more than
this—there are some other guidelines, but let’s keep this simple) Now, you
don’t need to fully understand this, it’s just based on a formula
established by IRS for all businesses—including your boat business.
The rest you
depreciate over the designated period. $42,000 over, let’s say 10 years.
You use the MACRS (arbitrarily established by category by IRS) method so
you get 10% of that, $4,200 as a tax deduction the first year, then 18%,
14.4%, 11.52% and 9.98% respectively for the next 4 years and so on.
Something over 65% for the first 5 years or, depending on the price up to
70 or even 80% when you include the 179 expense allowance!
Now, because you are
operating as a “pass through” LLC, these deductions are all applied
against your ordinary income from all sources, including your income from
your normal business, and the income from your new “shoe store business”.
As you might imagine, because of the generous 179 and depreciation
deductions--your tax deductions will, no doubt, exceed your shoe store
income. That’s o.k.
You next apply these
deductions against your ordinary income from all other sources to continue
to reduce your overall, personal tax liability.
But that’s not all.
Remember the loan? You get to write off the interest. The rent? (Dockage)
Yep. Insurance? Yep. Maintenance? Of course. Salaries? (Management fees
paid to LGC) Yes. Your travel to the “Shoe Store convention” (Trips
on your boat to introduce friends and associates to cruising (demos)).
Absolutely.
In fact we’ll show you
why, in our unique program, virtually all use of your boat will be
business use and deductible. Most of our owner’s get as much or more use
of their boat as compared to a conventional purchaser—however they also
get income when they’re not using it, and tax advantages that offset
virtually all of their costs.
So, as not to carry
this too far, you don’t wait until the end of the year to get these tax
advantages. Our business plan will give you a close approximation of the
tax advantages that you can expect—year by year, including the loan
interest, depreciation and all of the other deductions. Knowing this you
simply amend your W4, or otherwise adjust your with holding to reflect
your new status. So this immediate increase in income can be used to cover
your normal “out-of-pocket expenses” (Loan payment, dockage, insurance,
maintenance, management fees, etc.)
In fact, most of our
owners find that with as few as 5-7 weeks of charter (out of a 28 week
season on the East Coast) along with the tax advantages, they own their
boat with virtually no out of pocket costs, compared to a conventional
purchaser that may be paying 10-20% of the purchase price annually for
these same expenses (Loan payment, dockage, insurance, maintenance, etc.).
Want to make your boat
a part of your retirement plan? We’ll show you how to use your savings and
tax advantages to own your boat outright in 4-6 years, instead of waiting
the normal 15-20 that it takes a conventional purchaser. You can truly own
in 1/3 the time for 1/3 the cost and I’ll share with you exactly how to do
this when you tell me your goals.
-
What makes our plan
unique, and allows you to qualify for the full business tax advantages
mentioned is:
-
This plan is based
on setting your boat up as a business, not on becoming a part of a
“Charter Company Program”. In a typical charter company program you
simply would not qualify for most of these tax advantages.
-
We make you a
“Sales Associate”—an independent contractor, contracted with BYA and
LGC. I’ll show you how this simple idea will translate into giving you
unlimited use of your boat, without reducing your tax advantages.
All of this and more
will be explained more fully when you fill out our on-line form, linked
below, and in complete detail with a fully customized business plan when
you fill out the form requesting the custom business plan, also linked
below.
Return to index
By experienced sailors
Charter boats are
poor choices for serious cruisers after they finish their charter life.
Their layout is broken up with as many cabins and heads as can be crammed
in and their performance and load carrying ability is poor. True.
Therefore they suffer at resale, often taking a 50-60% loss of value.
True. By the end of their charter life, they are in terrible condition and
so either need extensive refurbishment, or are sold at a tremendous loss.
True.
But, this is not what we’re talking about. In our Boat as a
business™ plan,
you choose the kind of boat you want to end up with (if you decide to sell
it, it’s a normal boat like a private owner would buy and it has been
meticulously maintained so it doesn’t suffer at resale, and is always
ready to go—with no refurbishment required—whenever you want to leave the
program.) Our boats are in the 5 star category and you will be proud to
own one. Because of our regular maintenance and preventative maintenance
program, without lifting a finger (and having more time to enjoy your
boat) your boat will generally be in better condition than most privately
owned boats where a typical owner’s maintenance schedule is totally hit or
miss compared to our professionally managed program.
Much more information on all of this is available when you fill out the
form below.
(Misconceptions) By Tax advisors
Accountant, tax
advisor, tax attorney, Good old Joe, or whoever—these guys come in a
variety of flavors from bean counter to creative consultant. The guy that
does your taxes, may or may not be the right advisor for you. Your job is
to not get discouraged if you hear quick, off the cuff answers to your
questions—without a review of the total program that we offer.
Over the years, we have had knowledgeable tax advisors refer clients to
us, and we have had lazy advisors who just don’t get it and don’t want to
take the time to find out more. One client asked me a question after
getting a negative opinion from his accountant. I spent all of 60 seconds
on the internet. Google turned up many pages on the subject, most of the
resulting sites had the answer right in the Google summary—I didn’t even
need to open the link to find out the right answer!
Our CPA advisor, recites that many CPA’s don’t fully
understand depreciation. Most operate in a narrow world and have a narrow
knowledge base. The bad news is that approximately 50% of our owners tax
advisors first told them not to proceed. The good news is that the other
50% educated themselves and became supporters (and many of those told not
to proceed, found a better advisor and are now enjoying their new boat!).
In the end, it may be more up to you than your tax advisor to decide
whether this program is for you or not. One thing I promise is that if you
will fill out our form and get the information you will be 90% of the way
to understanding whether this makes sense for you—and you should do
this before talking to your advisor.
What if you and your friend had a $1,000 bet on the color of the next car
coming down the highway. You are standing along side this highway at night
and a car is approaching with blinding headlights. Your friend declares
that the car is black while you are both still standing in the glare of
the headlights. You, prudently, wait until the car gets alongside you out
of the headlight glare and you clearly see that the car is Blue. No one
said that a part of the bet was that you couldn’t wait to get more and
better information! It’s your money. Take the time to get the information
you need to make an informed decision and you’re sure to be a winner!
After all, if you don’t understand the program and are not an advocate,
how can you expect to convey your desire and enthusiasm to your advisor?
Remember, the easiest thing for him is to simply say no. No possibility of
a problem later—for him. But if he’s good. If he understands the
difference between a charter company program and a management program. If
he understands that you really want to do this. If he understands the
unique differences in our program that help you to meet the 7 tests for
meeting the active vs passive business criteria; how our program insures
that you don’t fall into the “hobby loss” elimination arena—If he takes
the time to understand, he will be able to move on to help you optimize
this business opportunity for your situation. If he can’t get to this
point, we can refer you to someone who is already there.
In either case, you need to get more information before you go to a tax
advisor. You need to understand the concept yourself. We’re good at
helping with that, and with making the process simple and fun. After all,
we’ve helped almost 600 others navigate through these waters before.
Now, if you would
like to get a sample business plan that shows how to reduce or eliminate
the costs of ownership. How the cash flow works with and without tax
advantages, and more--please fill out the form below.
Return to index |
Where You've Been is Important, but you can't
do much about it — Where You're
Going is totally up to you!
Go to our Q&A page here and find out why everything is not always as it
first appears. Link here.
 Getting
good tax information is critical.
Among the simple tax tips that we will offer after you fill out our form
is "How to avoid being audited in the first place!" For example, your LLC
name is critical. We'll explain why. |
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NOW:
Pay no sales tax. Pay no duty. Want to find out how/why? Call
410-263-2311 (Just one idea of
immediate savings available with some creative knowledge!)
So, how to you figure your tax
bracket in order to determine your savings?
Note, there are two answers. What is
your average tax bracket, and what is your marginal tax bracket, and,
what's the difference.
Average tax bracket--what you pay on
your income. So if you knew that you were going to have 200,000 in
income next year, we could compute your average tax.
Your marginal tax bracket is what you
pay on the next dollar earned--in the case of our program, it's what you
would pay on your new boat business income, and so now this is the new
basis of your tax savings.
In addition, don't forget to add state
tax. So if you had 33.9% Fed tax and state tax of 4.75% (MD) your
marginal tax bracket would be 38.7%! Now you begin to see the extent of
the potential savings.
Tax Calculator here--or click on the graphic this will take you off
of our site so just close the page when you're done and come back here. |
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Join us for a seminar in our office, or
on-line. Schedule and more
information, including a sign up form...
"How to own for
less."
At this point, neither of us knows if this
program is right for you. But, if you would like a free consultation so
that we can exchange information in order to create a business plan
specifically for you, Please fill out this form...
Click
here.
If you would like to call:
410-263-2311
 For a typical $345,000 boat
(This works for boats from $150,000 to $1.5M), the costs
are shown on the left bar graph--and they're substantial no matter how you slice
it.
To the right we show bar graphs from actual clients
that demonstrate how the typical tax benefits and
income from just limited chartering cover those costs. With as few as 49
to 63 days of chartering--you can cover all the costs and still use your
boat pretty much whenever you want. Why this could even be a part of
your retirement plan. End up owning in as few as five years for 1/4 the
costs a typical purchaser pays for 20 years!
Return to index |
brochures, in
depth articles, business plans, pre-announcement of new models and charter
specials and more.
