JUST ADDED! 90 DAY OFFSHORE DELIVERY IS BACK!

Whether you're going to sail the open water, fish your favorite coves or chart a course to your dream retirement, buying a yacht is the adventure of a lifetime. You can find many exceptional values in both new and used yachts. To make sure you get years of pleasure and adventure out of your boat, buy smart. We have compiled a list of frequently asked questions along with a yacht purchasing checklist that we hope you will find helpful.
We have also added a new page on preparing to sell your boat, to help you get the most for your boat when you are ready for your next one.

Find a dealership that sells the range of boats you think you are interested in.
We have many new boat lines of both power and sail for you to choose from as well as an extensive list of used boats. Having a dealer close to where you live can be a big benefit and save you lots of time. We have 6 sales locations throughout California to serve you.

Choosing your boat.
Choosing a boat is a very personal decision. We can help guide you depending on how you wish to use your boat. And sometimes that can be a hard question to ask yourself, but be honest with yourself and you will be that much happier with your purchase. Obviously you wouldn't want to go and buy a racing sailboat if your intention is to cruise the bay with family. Although we have lots of types of yachts for sale, we absolutely want to make sure you are getting what you really want.

Choosing the right gear.
Many boats come stock with excellent gear and electronics, but undoubtedly you will want to add an item or two to your new boat. Our professionals can help you choose what gear best suites your needs and budget, install it for you and teach you how to use it. We are boaters too and we live and love boating. We have as much fun as you do planning and putting together your new boat. If you can dream it, we can install it.

Your Dealer's Service Department
Does your dealer have a certifed staff of sales professionals to install and service your new yacht. Are they licensed, insured and bonded? Do they have mobile dockside service to help you no matter where your boat is? Do they have emergency technicians available 7 days a week? We can proudly answer "Yes" to all of the above. Our award-winning service department is ready to make your boating dream a reality.

So HOW do we BUY the boat? Two Scenarios
There are two different scenarios when it comes time to buy the boat, depending on the location of the boat. Scenario one is that the boat is in stock at our show docks. Most dealers will require a down payment of 10% to start the purchase process, and "close" the financing with 90% of the purchase price within 10 days. The remaining 10% is due on delivery day.

Scenario two is the boat needs to be ordered from the factory. 20% starts the process and get's the boat ordered. You close on 80% of the purchase price when the boat ships from the factory, and we return 10% at that time. You pay the final 10% on delivery day. We don't start commissioning and installing equipment until she is 90% funded (after closing).

Can we finance our boat inhouse?
You can finance most boats over 20 years! It is incredibly easy to finance a boat and we have our own inhouse financing department to make financing a new boat even easier. There are also tax benefits to owning a boat whether it is a second home or being placed into charter. We have a page devoted to placing your boat into charter for more information.

So when will she be ready?
If we had to install alot of gear, it can take is 5-8 weeks from the point that she arrives on our docks or at our yard. (For boats above 50', plan 10 weeks.) We do everything from "building" the rig (sailboats), to commissioning all of the systems, to putting the bottom paint on...to completely detailing her and making her beautiful for delivery day. We take pride in doing it right and want to make her as perfect as possible for you.

Delivery Day!
Then the big day arrives, DELIVERY DAY! The day you have been waiting so anxiously for.You'll go through a thorough "Walk Through" with Paul Briant, our Quality Control Manager which will take about 3-8 hours or however long it takes to get you comfortable in your new boat.. Paul will go over everything from where your thru-hulls are to how to plot a course on the new chartplotter. He'll go over all of your warranty paperwork.
Beyond all of the extra time that we are willing to spend with you teaching you how to enjoy your boat, you'll get 8 free hours with a licensed CG captain aboard to secure your comfort level. We give you as much time as you need to get to know the boat.

Now what?
Time to enjoy your new boat. From here, you are in the very cable hands of our after sale service department. We will check with you to make sure everything is as it should be and that there is nothing left to do except to enjoy your new boat and go for a cruise! If anything should come up, we have dockside service locations throughout California with emergency service available 7 days a week.

Possible Tax Benefits to buying a boat. 

1. Will a boat qualify for a second home deduction? 
Yes, if a boat has a place to sleep, a head and a galley it will qualify as a second home deduction.
2.  What does this give me?
You can write off all your interest expenses related to the boat, just as you do your primary residence.
3. What restrictions apply?
  The IRS only entitles you to one 2nd home deduction, so if you already own a home, it might benefit you to finance your boat through the equity in one of your homes

1. Can I write my boat off as a business expense?

Many of our clients do write off their boats through their business; however you would want to meet with your own accountant to insure you followed IRS guidelines. 

1. What advantage does placing a boat in an on going charter company?

There are many tax and cash flow advantages to this technique.

1. You are able to depreciate the boat (10 year accelerated depreciation MACRS)
2. Section 179 expense deduction in the year of acquisition (up to $107,000 in 2007)
3.  You are able to deduct all ordinary and necessary charter related expense (berthing, insurance, maintenance, interest etc.)
4. The boat will receive the care and management by a professional staff (varies with charter company)
5. You receive the income from Charter.
6. You and those that charter your boat will receive good training using the American Sailing Association (ASA) Training Program.
7. You will have the opportunity to dramatically reduce the time it takes to pay off your boat.
8. There will be a dramatic reduction in ownership expenses.
9. There may be an easier access to slips, an increasingly scarce commodity.

What is an Offshore Delivery all about?

Offshore Delivery – California reverts to the 90 day out-of-state rule for yachts & planes with passage of recent state budget

Our guess is that this law will not last long. A new bill changing this law could be passed as early as Christmas...

July 1, 2007 - Owners of yachts, planes or recreational vehicles, will once again be able to obtain a sales tax exemption if they keep those items out of the state for atleast 90 days after purchase. The law has reverted back to pre-2004 status.

A provision intended to keep the one-year requirement in place was removed from the budget last month at the insistence of Senate Republican Leader Dick Ackerman of Irvine. 

Ackerman said in an interview that the stiffer rules were pushing yacht brokers and manufacturers out of the state. The boost in sales tax payments was the result of more Californians buying jet skis and smaller vessels, not yacht owners forgoing that long trip to Mexico, he said.

Gov. Arnold Schwarzenegger has worked with Democrats to keep the one-year requirement in place. It had been renewed each year since it was enacted in 2004 -- until now.

What is an Offshore Delivery?
For many years clients have chosen to take delivery of their boat in a location outside of California, in order to use it in a location outside of California.  One of the advantages of this practice is that the dealership is not required to collect sales or use tax (approximately 8% of the purchase price, depending on the county in which you purchase the boat).  California requires that a retailer collect or a buyer of a brokerage boat pay a sales tax on the purchase. The only exception is when a client requests, and takes delivery outside of the state.  This will keep them from paying the sales tax, but they will be liable for a Use Tax (coincidently the same amount as a sales tax) unless they follow very specific rules and did not “intend” to bring it back or to keep it out for the purpose of avoiding sales/use tax.  Below you will find a list of 8 key summary points to consider and a list of 3 attorneys who specialize in this type of transaction. We highly recommend using an attorney to insure you follow the intent and letter of this tax code. This list is meant as a general guideline and should not be solely relied on to make your decision to take an offshore/ out of state delivery.

• The Purchase contracts (new or brokerage) must state that the offshore delivery as a contingency.
• The purpose is not to avoid sales tax.
• You should not keep your current slips or anything that could be argued that you intend to return to California.
• Buyers must keep the boat out a minimum 90 days.
• The client must keep all records of usage out of the state to verify it has been used not stored. There is no specific usage amount required by the state; however we suggest you use it as much as possible.
• The owner can not use the boat or put equipment on it until he has taken delivery out of the state.
• California Attorney’s who are experts in this tax code and others relating to your boat purchase.
• Bill Dysart  619 231 4844
• Cris Wenther  858 457 3800
• Paul Trusso  619 2262628

Thanks for taking the time to visit us at H&S Yacht Sales. We are sure your choice of working with us will be gratifying. Thanks again! If you have any questions, don't hesitate to drop us an email at info@hsyacht.com or give us a call at 800-845-7420.



Ever wonder about putting your new boat in charter? We have added a Charter Info page to the site. The basics of what you need to know to place your new boat in charter and how it can save you thousands of dollars! We also have an article below that was published in the East Bay Times and written by Don Durant of Cruising Yachts in Alameda. The link for this article is below and also on our Charter Info page.

Placing a New Boat in Charter - What you need to know (.pdf)