Skip Your Next Estimated Tax Payment?

Reduce estimated tax payment due to bonus depreciation

Updated August 22, 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 next estimated income tax payment due September 15, 2020.

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 base your estimated tax payment on 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