60% Bonus Depreciation for 2025 Aircraft Deliveries:
Place Order by December 31, 2024
Bonus depreciation is scheduled to phase down to forty percent on January 1, 2025. However, if certain conditions are met, the tax code allows 60% bonus depreciation to be taken on 2025 aircraft deliveries. With income tax rates expected to increase, you should consider placing an aircraft order by December 31, 2024 to qualify for 60% bonus depreciation in 2025.
If the following requirements are met, a 2025 delivery can qualify for 60% bonus depreciation:
∗ Signing a binding contract to purchase the aircraft by December 31, 2024
∗ Making a non-refundable deposit of the lesser of:
o 10 percent of the cost, or
o $100,000
∗ Taking delivery and placing the aircraft in service by December 31, 2025
∗ Depreciation deduction will be taken on your 2025 income tax return
In some cases, you may not be able to take full advantage of the deductions discussed above. Failure to document and support the proper business use of the aircraft can jeopardize these deductions. Proper planning for your state sales / use tax can result in significant savings. Finally, it is imperative that you operate your
aircraft in full compliance with the Federal Aviation Regulations. To learn more, visit our website, www.aviationtaxconsultants.com or call us at 812-342-9589.
Aviation Tax Consultants (ATC) assists aircraft purchasers in acquiring aircraft in a tax efficient manner. Our services include the elimination or reduction of sales tax at the time of purchase, maximizing income tax savings, controlling the cost of personal use of the aircraft, complying with passive activity loss, hobby loss and
related party leasing rules and Federal Aviation Regulations. Cooperation with client’s current tax and legal advisors is welcome and encouraged.
Updated: July 2024
Disclosure Under IRS Circular 230: To ensure compliance with requirements recently imposed by the IRS, we inform you that any tax advice contained in this communication, including any attachments, was not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax related penalties or promoting, marketing or recommending to another party any tax related matters addressed herein.
