Skip Your Estimated Tax Payment 7/15?

Reduced payment due to plane expenses

July 13, 2020

If you have purchased a business aircraft or are contemplating an acquisition in 2020, you may want to discuss with your tax advisor the option of reducing or even skipping the July 15 estimated income tax payment. 

100% bonus depreciation can provide immediate income tax relief in 2020.  Instead of making an income tax payment based on your 2019 income, you should compute the projected 2020 taxable income taking into account aircraft depreciation and expenses. 

This review should be done for the 3rd and 4th quarter estimated tax payments.

 

by Daniel Cheung, CPA