As we approach the last quarter of 2019, market indicators support the possibility of a very strong year-end in aircraft transactions. If you have not purchased or sold an aircraft since the passage of the Tax Cuts and Jobs Act (TCJA) of late 2017, a review of how changes in the tax law may impact transactions for the balance of the year is in order. Similarly, if you are contemplating selling your aircraft, upgrading, bringing in a partner,
Congress has chosen to allow taxpayers to write off the cost of their aircraft on an accelerated basis. Business aircraft used for private purposes (non-commercial) can be depreciated using 5-year MACRS rates providing they meet certain requirements. The rapid tax depreciation provides significant after-tax cash flow. From time to time, as is the case now, Congress allows taxpayers additional accelerated depreciation in the form of special 50% bonus depreciation for new business aircraft.