Bonus Depreciation: Available for 2011 Deliveries

Back to News & Events28 October 2010

President Obama has signed the Small Business Jobs Act of 2010.  This legislation brings back 50% bonus depreciation for qualified business aircraft purchases.  Property placed in service in taxable years beginning after January 1, 2010 and before December 31, 2010 will qualify for 50% bonus depreciation.

 The general rule to qualify for bonus depreciation includes:

•  Purchase and place in service a new business aircraft in 2010
•  Aircraft held as demonstrator by factory or dealer will qualify as new aircraft
•  Acquiring an existing position in the market place for an aircraft that will deliver in 2010 can qualify for bonus depreciation. 

 If the following requirements are met, a 2011 delivery can also qualify for bonus depreciation:

• Signing a binding contract to buy a new aircraft by December 31, 2010
• Making a non-refundable deposit of the lessor of: 

• 10 percent of the cost, or
• $100,000
• Taking delivery and placing the aircraft in service for Part 91 operation by December 31, 2011

Contact an Aviation Tax professional for information specific to your situation.  Don't let this opportunity pass you by.