The Tax Benefits of Private Jet Ownership
The new tax code has made private jet ownership more advantageous than ever before.
The 2017 Tax Cuts and Jobs Act brought adjustments that increased the charm of purchasing a private plane. The tax code currently permits a 100% bonus depreciation for the acquisition of an airplane. A new or used jet’s cost might be deducted in the first year for business use.
As corporate America continues to grow, so does the demand for private jets. But how do you know if buying one makes sense? The answer might be clearer now, thanks to recent tax law changes! Now it’s even easier than ever – purchase your dream machine and then claim 100% bonus depreciation on the investment.
Fuel and maintenance expenses are also deductible. If the aircraft is utilized for business at least 50% of the time after the first year, the owner can keep the deductions.
Not only that. A penalty known as the “ticket tax” or taxes on the “maintenance and support of the aircraft owner’s aircraft or flights on the aircraft owner’s aircraft” were also excused under the 2017 legislation for private aircraft owners. The “ticket tax” was originally meant for commercial flights, so the new phrasing is “a clarification on a technicality.” For private charters, a different “gas tax” is intended. Due to ambiguity in the language, the IRS ceased collecting the “ticket tax” on private flights in 2013. Still, the new law resolves this issue, which is only excellent news for private jet owners and operators.
Owning a private plane is ultimately more than a tax write-off, it’s a method to save time and be more effective whether you’re traveling for work or enjoyment.
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