Aircraft owners who buy their aircraft for business use picked up a couple of perks in the recently passed tax bill. Lawmakers quadrupled the size of so-called Section 179 expense election deduction, and both extended and boosted a special post-September 11 depreciation allowance that is intended to encourage increased capital spending.
In plain English: If you buy a new aircraft for business use, you may be able to significantly reduce your tax burden. But there are strings attached.
"Owners need to check carefully before claiming either of these deductions," said AOPA Counsel Kathy Yodice. "There are particular requirements that need to be met before the deduction will be allowed, and states have some say in whether they'll allow some of these deductions on your state tax return. Nevertheless, these tax changes should benefit many aircraft owners."
For more background on the new tax law impacts, click here. For specific information, contact your tax adviser.