Taking Advantage of A Tax Loophole

This year is sure to be a popular year for private aviation. Many charter companies are seeing all time highs in demand. Manufacturers are struggling to keep up with surging sales, while used aircraft prices are climbing higher and higher. But a tax cut implemented in 2017 is a major help for aircraft owners, or anyone in the market to purchase one!

Major Deduction

The 2017 Tax Cuts and Jobs Act implemented a 100% bonus depreciation for aircraft. This allows private jet owners to deduct 100% of the jet's cost. This has led to an increase in private jet sales, paired with the Covid pandemic, which has created an increasingly competitive market in the aviation industry.

Incentivizing Buying

This deduction is a major win for any private jet owner. According to the NBAA, the deduction allows owners to take out 100% of their depreciation at a faster rate. Before, a private aircraft owner could only take out a certain percentage of their bonus depreciation. Meaning, they would have to write the costs off each and every year, spreading the savings out over a period of time.

Thanks to the tax saving, an aircraft owner can now take out all of their bonus depreciation at one time. This saves them from losing value as the aircraft depreciates year over year.

Why Do It Now?

As mentioned above, the deduction is set to expire at the end of this year. Meaning, any aircraft owner is leaving money on the table. By filing for the deduction now, early in the year, you can avoid any hold ups or issues with qualification.

Contact Liberty Jet today, and we can walk you through the process. Liberty Jet has a staff of experienced team members that will help you take advantage of this tax deduction before it expires!