Bonus Depreciation For 2015 Aircraft
I read an interesting article in Aviation Week about the resilience of the market for the largest business jets. Their resilience as the aircraft of choice for ultra high net worth individuals, governments and corporations is no surprise. One reason for this were the long production cycles for these aircraft. New Gulfstream business jets have always been “built to order” and can take a year or more to complete. The planes on the assembly line during the crash years of 2008-2009 had been on order for some time before, and there was a healthy backlog of others waiting in line at that time.
The tax benefits for these buyers remains as well. Aircraft bonus depreciation deductions, which have largely been phased out going forward still applies to certain large business aircraft placed in service prior to January 1, 2015. This can occur in one of two scenarios, first, if the aircraft is considered “long production property”, or second, if the aircraft otherwise met the requirements for 50% bonus depreciation, part of which required that there was a written binding contract in place for the plane prior to 2014.
Contact me for an analysis of your tax savings.
Ari Good, JD LLM, an aviation tax lawyer is the shareholder of Good Attorneys at Law, P.A. He graduated from the DePaul University College of Law in 1997 and obtained his L.L.M. in Taxation from the University of Florida in 2005. He has helped hundreds of clients to defend themselves against the tax authorities and negotiate their liabilities, and worked with aircraft buyers, sellers and operators in complex tax transactions.
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