Industry News

March 2012 Issue

Tax Considerations: Biz Aircraft Deductions

2011’s 100 percent bonus depreciation can apply not just to new airplanes, but new upgrades. With 50 percent in place, 2012 is still a good time to buy new.

With the 100 percent bonus depreciation rule in effect, 2011 was a good year to buy a new aircraft for business use. But to claim the benefits of the bonus, you need to get your filing details in order and not overlook the record keeping necessary to justify the bonus claim. Further, to avoid getting afoul of the IRS, it’s critical to understand what business use really is. As for 2012, the bonus will be 50 percent, but if combined with allowable expensing elections, you can still claim a sizable chunk of depreciation to reduce your tax burden and make the cost of a new airplane for business use more appealing than it otherwise might be.

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