News

Reasonable Compensation S Corporation Salary

by Tom Andrews, CPA The S Corporation is a popular tax planning tool utilized by many captains and crewmembers in the yachting industry.  The purpose of this column is not to discuss the reasons for forming or not to form an S Corporation but to discuss the concept of “reasonable compensation” The two most common […]

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2015 Foreign Earned Income Exclusion Update

By Tom Andrews, CPA Every year I meet with clients who say to me “I heard if I am living outside the United States for 183 days I am not required to pay taxes…”  I believe this is one of the most common tax related myths in the industry.  This myth is so often repeated […]

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Rental Real Estate Tax Implications

By Tom Andrews, CPA As the real estate market continues to rebound and interest rates remain historically low yachting professionals are continuing to invest in real estate.  Since traveling is a cornerstone of a yacht crewmembers  career,  becoming  a land lord is a common progression for many yachties.  Aside from the daily obstacles of becoming […]

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Social Security Administration W-2 Filings for Nonresidents

by Tom Andrews, CPA As discussed in previous columns foreign flagged vessels are required to withhold federal income taxes from nonresident crewmembers while those vessels are cruising in US territorial waters unless limited exceptions apply, in some cases where the crewmembers fails the “substantial presence test” the employer may be required to withhold federal income […]

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Yacht Crewmembers Receiving Foreign Gifts

By Tom Andrews, CPA Now that Christmas is over the topic of foreign and nonresident gifts become a frequently discussed topic.  Many yacht crewmembers have friends, family, spouses etc. who are nonresidents living outside the United States.  These relationships sometimes give rise to the transferring of assets or funds between residents and nonresidents, such transfers […]

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The Mini Yacht Manager

by Tom Andrews, CPA The term “yacht management” has been used to describe a vast number of services in the industry, the large management companies tend to manage every aspect of the vessel including but not limited to MLC compliance, payroll, crew placement, accounting, itinerary, etc. The medium sized management companies may offer limited services […]

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AWL Grip Captains Golf Invitational

by Lisa Marshall On Friday, October 17th, AvMar came out to support Yacht Captains at the AWL Grip Captains Golf Invitational.  Everyone had a blast in support of Yacht Aid Global, Save Our Seas and Marine Industry Cares. Here are some pictures from our Hole 11  “The Longest Drive”.

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US Taxman Targets Yacht Owners

By Don Hoyt Gorman, (The Super-Yacht Owner Website) An American super-yacht owner and a number of his super-yacht owning friends have all received the same letter from the US Internal Revenue Service (IRS) informing them that their yachting affairs would be audited for tax.   It’s not the kind of letter that anyone would want to […]

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Form 8233 “Facts and Fiction”

by Tom Andrews, CPA Any nonresident crewmember that has worked on a foreign flagged vessel has probably been asked to sign form 8233 “Exemption Form Withholding on Compensation for Personal Services of a Nonresident Alien”.   By signing this form the vessel/employer is relieved from the responsibility from having to withhold federal taxes from the wages […]

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AvMar begins withholding U.S. taxes from foreign crew

Originally Published in “The Triton” 09/27/2011. Ft. Lauderdale-based AvMar Payroll Services, one of the industry’s largest yacht crew payroll companies, has begun withholding U.S. income taxes from foreign crew while working on vessels in the United States. The practice runs in the face of long-standing traditions of non-resident yacht crew not paying tax on their […]

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