Charter Yacht Investment details are set out below.
| 1. | Charter boat owners need to demonstrate that they are in business (as defined within the ATO ruling and its examples), including the provision of an acceptable business plan. |
| 2. | Private use of the boat by the owner is an acceptable circumstance as long as it is disclosed & provided charter is the predominant use & takes precedence over private use. |
| 3. | The revenue & expense items contained within the forecasts of the business plan must not be fanciful & need to be prepared on a realistic basis after consultation with experienced operators in the particular locality where the boat will be operating. |
| 4. | The projected result of the business plan must indicate a prospect of profit within the expected commercial life & be of a substantial commercial nature. |
| 5. | The business plan will usually exclude a tax depreciation as an expense, however, include an expected reduction in the market value of the boat as an expense over the period of the business plan. Conversely, the subsequent tax return would usually contain the actual tax depreciation as part of the expenses for business reductions. In such an instance, there would be a significant difference between the business plan & the physical tax return as a result of this area, especially in the early years of the business. |
| For a summary of where the industry is now at in terms of a clear direction forward, as well as a direct link to the ATO web site which is very informative, see www.finlease.com.au– boats – charter.If you would like to discuss the prospect of purchasing a Catalina yacht & placing it into Ausail’s charter fleet, please call Norman Ambrose on 9960-5511 for a detailed summary. | |
