So here's the thing. I want to start a charter fishing business. Myself and another guy would be the captains. He would more than likely handle the inshore stuff and I would do the offshore stuff. (albeit he would probably be using the boat 75% of the time.) I am still a little leery about myself doing the actual chartering due to the line of work I am in.

I planned on opening up an LLC to hold the boat and gear in and then use that same LLC to deposit the money from the trips in. The other guide would simply just rent the boat each trip he made and make the check payable to the LLC.

Easy enough.

My questions are, how does the boat get depreciated? Can I use section 179 bonus depreciation on the boat. I know I can use that for everything else, engines, electronics, gear etc.

While I don't plan on making a killing with this business, It should be profitable no doubt as the other guy is going to charter it often.

So the real question is, can you use bonus depreciation on the boat?

Bonus: only if the boat is new.

Sec. 179: Should qualify, but the deduction is limited to income so may not be able to deduct the full amount in year of purchase.  You can elect the full amount and generate a carry forward though.

Thanks!

How about for repowering the boat? I imagine engines are able to be depreciated using 179

Capitalized repairs follow the life and method of the underlying asset, so yes those would also qualify for Section 179.  However, those do not qualify for Bonus Depreciation.

Ok. so if I  understand correctly. I buy a new boat for $80,000 I can deduct the whole amount on my schedule C or carry the loss forward, and then If I repower for 15k I can deduct the whole amount of the repower?

Correct, again subject to income limitations.  This also assumes that the boat is 100% business use.  This would also mean you no longer have any basis in the asset should you sell it or trade it, which may or may not be a concern depending on your timeline.

It will be 100% biz use, I'm going to lease it to a guide.

Thanks for the info.

OST, but I don't know shit about taxes. I just want a cheap trip to catch tuna by the rigs. 

In the fall around hear the blackfins are all around the trawl boats. They are easy to catch people use their little bay boats to go out there

What kind of boat do you have/are buying?

I'm seriously considering buying a Pathfinder bay boat in the 22' range. The shelf is so shallow in this area, It's not worth the 40 mile run out to get to 40 ft of water. 

It depends. I really want a Tideline 235 but I may end up with somthing like a BlackJack 224 or a Keywest 246 Bayreef. The problem with the Black Jack and the Keywest is I can't take those to the floaters where the Yellowfin tuna and the deep dropping goes on.