The House of Representatives was hard at work last night.  By a vote of 357-70, it passed the extension of 100% bonus depreciation legislation, retroactive for all 2023 qualifying aircraft acquisitions, in addition to extending 100% bonus depreciation for aircraft purchased through December 31, 2025.  The legislation will now go to the Senate and with some typical gamesmanship by both parties, I expect the bill will pass and President Biden will sign the bill into law.

2023 buyers lucked into full 100% bonus depreciation for their purchases in 2023.  2024 and 2025 deals, new and pre-owned aircraft, will qualify for 100% bonus depreciation.

Understand that there are various intersecting IRS regulations that can disqualify an aircraft from 100% bonus depreciation, or significantly reduce its effectiveness.  Proper planning addressing the various regulations (including FAA regulations and state tax laws) is of utmost importance.  Utilizing a structure that mitigates potential IRS audit risk is also a top priority for our clients.

Learn more at https://aviationtaxconsultants.com

by Daniel Cheung, CPA100% Bonus Depreciation Returns!