Here is an article that will be published by Skytech Advantage Magazine, Summer 2020
We discuss the tax ramifications of upgrading to a new aircraft in 2020, managing the recapture of depreciation, utilizing 100% bonus depreciation, and taking advantage of the CARES Act net operating loss carryback provisions.
House Ways and Means Committee proposes tax reform and tax cut legislations on Friday that include provisions to retroactively extend 100% bonus depreciation for 2023 business aircraft acquisitions.
The Tax Cuts and Jobs Act (TCJA) enabled 100% bonus depreciation for eligible property purchased and placed in service after September 27, 2017 and before January 1, 2023.
My response is a resounding no – why subject your passengers to additional tax payments to the US Treasury when alternatives can be implemented.
Our annual frantic race to closing last minute aircraft deals has begun. We have been fielding numerous questions and scenarios whether an aircraft qualifies for 100% bonus depreciation in 2022:
Capitals gains or ordinary income?
The general rule for bonus depreciation for a 2023 acquisition is 80%. “Certain Aircraft” as defined by Internal Revenue Code §168(k)(2)(C) will qualify for 100% bonus depreciation for aircraft that will be delivered and placed in service in 2023 (§168(k)(6)(B)(i)).
