Turnkey Business, Ready-Made for Boat Owners
The Sovereign Boat Club is a shared access business that has been set up specifically to make boat ownership more affordable. Owners of new boats need only share access to them through our program. By signing a contract, you’re in business, and the Club manages it for you. This simple act makes you eligible for tax deductions under Section 179, and earns you income generated by the club.
All of the boats seen here are “Section 179 Qualified,” which means they are welcome in the Sovereign Boat Club Program and are qualified for the tax deduction, as long as they are used 50% or more of the time by club members. Other brands and models may qualify for the Club’s program, so contact us for more information.
If you are in the 35% tax bracket, you might be able to receive a cash savings of 35% of the cost of the boat. See the chart below as an example or try the calculator here.
Earn Income with Club Access to Your Boat
By entering your boat in Sovereign Boat Club’s program, you can earn income to cover your normal operating expenses – plus, offset depreciation and help pay down the note when the boat is kept in our Club program for the full term. A general example of income you can expect depends on the purchase price, cost to operate your boat and the number of members joining the club to use your boat.
Annual income example based on a $400,000 boat
Note: While the example above has been taken from an actual boat in the Club, this example is not a guarantee of income, which may vary based on the purchase price, operating expenses, the number of days available, and market conditions for the specific boat involved in any given location.
- Premium well-equipped brand
- Boat must be 3 years old or newer
- The boat must be available for 4 years
- Location must be within a 30 minute drive of a large population center
- Must be in excellent condition with no encumbrances
- Must be available for inspection
- The original invoice must be available
The most practical ownership program available
Boat ownership is expensive, not only because of the high cost of new boats, but also because of ever-increasing operating costs and depreciation. By entering your new boat into Sovereign Boat Club’s program, you'll receive a tax deduction of the cost of the boat commensurate with the Club’s use and you will also receive income from members using your boat. This income will go a long way to covering your operating costs and mitigating your boat’s depreciation.
- Income to cover operating expenses
- Income to mitigate depreciation loss
- Expert 3rd party boat management
- Boat depreciation is tax deductible
- No time robbing maintenance chores
- Active Marketing
- Easy online reservation system
- Boater orientation & training
- Smart utilization of your expensive asset
- Maintenance records for better resale
- Turnkey marketing and management
- The boat owner signs a contract with Sovereign Boat Club to allow use of the boat by members in return for payment for member usage. Contracts are on a year to year basis, and boat owners can withdraw their boat’s use at the end of any contract period.
- The Club markets memberships for exclusive usage of your boat for the number of days you specify are available each season or year – however, the boat must be available for at least 50% of the time.
- Club members reserve their boat usage with the Club’s on-line reservation service.
- Boat owners receive income from each of the members using their boat, all of which is billed and paid to you by the Club in one monthly check.
- Because your boat is a business, depreciation is tax deductible
- Monthly income based on the number of Club Members
- Use of the boat when not reserved by members
- All member billing and receivables in handled by the Club
- Online reservation system
- Marketing services and sales
- Management of the vessel, including help with securing storage, insurance, and equipment
- Full third-party management services including overseeing and scheduling maintenance, repairs, clean-up, and monitoring of member usage and fuel consumption
- Peace of mind that your boat is being looked after regularly
- With full membership in your boat (8 members), for five years, you should be able to cover your operating expenses and mitigate a major portion of your boat’s depreciation.
- Ownership of the boat
- All operating expenses
- Adding certain equipment required by the Club
- A one-time enrollment fee of the boat in the Club
- Giving over management of the boat to the Club on a year by year basis