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You are here: Home / YouTube / Youtube income tax / If I lease my aircraft to a charter company and it is chartered most of the time, will this affect depreciation of the aircraft for federal tax purposes?

Written by jonl

If I lease my aircraft to a charter company and it is chartered most of the time, will this affect depreciation of the aircraft for federal tax purposes?


 

Transcript:

Depreciation for aircraft for federal tax purposes have a variety of various schedules, depending on how the aircraft is used. That is for most part 91 business aircraft operations, the applicable time period is either going to be a 5 and a half year MACRS period or a 6 year straight line. In contrast, for aircraft predominantly used for charter operations, the aircraft depreciation life is generally either a 7 year MACRS or a 12 year straight line depreciation schedule. Yes, if an aircraft is going to be predominantly used for charter operations, it will affect the timetable for depreciation. If you move your aircraft onto a charter ticket after you’ve already been using it on a 5 and a half year schedule, you may also have depreciation recapture to move to the appropriate Part 135 (is what we commonly refer to it) schedule, in order to make sure that you are applying the appropriate depreciation timetable on your federal tax return.

Filed Under: Youtube income tax

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Advocate Consulting Legal Group, PLLC. 3555 Kraft Rd. Suite 240 Naples, FL 34105 and 1300 N. Westshore Blvd. Suite 220 Tampa, FL 33607. Suzanne Meiners-Levy, Esq. (239) 213-0066. Tax Disclosure. We inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under federal tax laws, specifically including the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Privacy Policy. Terms of Use.