CPAsFederal Taxes

New Tax Law Could Have Positive Effect for Corporate Jets

By August 14, 2018 September 5th, 2018 No Comments
jetstream law - A law firm handling domestic and international business jet transactions.

A Puget Sound Business Journal article suggests that the new tax law may help increase business aircraft purchases. Buyers of new aircraft, and for the first time buyers of pre-owned aircraft as well, will be entitled to immediately expense 100 percent of the purchase price.

To make use of this deduction aircraft must be placed in service between September 27, 2017, and January 1, 2027, or January 1, 2028, for longer production period property. However, acting sooner rather than later will maximize this benefit, as the Act provides for a phase down of this bonus depreciation beginning January 1, 2023. Certain aircraft subject to a binding written purchase agreement can qualify for a one-year extension of the placed-in-service date, making them eligible for the full benefit longer.

Full details on the requirements for claiming this depreciation benefit can be found in IRS Publication 946.

 

Michelle M. Wade is a Partner with the aviation law firm of Jetstream Aviation Law, P.A. and counsel clients on the acquisition, financing and operation of corporate jets operated under Part 91 and Part 135 of the US Federal Aviation Regulations. Jetstream Aviation Law can be found at www.JetstreamLaw.com. Michelle Wade (mwade@jetstreamlaw.com)

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