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 (firstname.lastname@example.org)
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.