BUSINESS AIRCRAFT AND TAX REFORM: 2017 OUTLOOK

Potential Cuts to Business Taxes May Make Deductions More Valuable This Year

One of the central promises of the new administration has been long-awaited tax reform. President Trump has promised imminent executive action outlining the tax reform priorities that he will pursue, and with a Republican Congress in place, some version of tax reform is likely either in 2017 or in early 2018[1]. While it is difficult to “read tea leaves” there are some commonalities between the Congressional tax reform agenda and the campaign promises of the President that signal significant relevant changes to corporate and small business taxation.

Tax Change Helps Executives Afford Pricier Planes

The recent changes to the tax code are giving business executives a new perk: the opportunity to deduct the entirety of a corporate-jet purchase.

President Trump signed more than 100 changes to the U.S. tax code into law at the end of last year. Among them: The price of a new or used airplane purchased by a company can be a 100% write-off against its earnings.

That is a major change.