Active Management Program for US Citizens
The Active Management Program is designed for US Yacht Owners to actively participate in running their yacht as a business. Running your yacht as a for-profit business can reduce the cost of yacht ownership and provide an owner with significant tax benefits. Horizon are Yachting and Charter specialists, we are not tax and finance advisors but Dickinson Wright, the company we recommend, has a proven track record, and ONLY Horizon’s Active Management Program has had an IRS review and approval from a US court of law. Of course, you can also consult your own CPA or tax advisor.
You will need to set up an LLC and develop a comprehensive business plan. This will need to be in place the day the yacht enters charter service. You must show clear intent to run the business profitably.
This includes the actual charter revenue generated on each booking through Horizon. The annual revenue stream will be dependent on charter activity. You should also look to place bookings on your yacht (or other yachts in the fleet) directly. You can also earn commission on charter referrals. You will need to track and document all income and take steps to maximize this revenue.
Owner pays all costs of running the business: These include: attending boat shows, monitoring and documenting all expenses undertaken by Horizon including dockage, insurance, yacht preparation and cleaning, briefings, maintenance costs, annual haul-out. Costs will include visiting the asset (yacht) at the base and reviewing statements with Horizon staff from time to time. You will need to take account of the yachts depreciation, interest payments on loans and any losses from the charter operation.
You need be actively involved in running the yacht as a business and must spend in excess of 100 hours running your business per annum. Your personal involvement must be more than any other single person who promotes or maintains the yacht. Horizon can help you achieve this.
Owner usage is unlimited, but excessive use will definitely impact the income potential and the tax benefits you could receive.
Your choice of yacht
Choose any yacht any one of these 5 world-class manufacturers: Nautitech, Lagoon, Fountaine Pajot, Jeanneau or Bavaria. The yacht must meet Horizon charter specifications but there are NO restrictions on cabin layout and additional customization.
The Active management program can run for 1 to 8 seasons. If your plans change you can exit earlier with 90 days notice.
Maintenance and phase out
Our professional maintenance teams will make sure your yacht is maintained to the highest standards at all times throughout the program. We will conduct a thorough phase out when the time comes.
At the end of the term, whether you want to sail around the world or daysail from the dock, Horizon can complete any upgrades you wish. We have a full service Brokerage that will help you sell if that is your choice.
*Yacht bookings must be able to be accommodated on another yacht in Horizons fleet.