The tax implications of owning a corporate aircraft

If your business is successful and you do a lot of business travel, you may have considered buying a corporate aircraft. There are tax and non-tax implications for aircraft ownership. In most cases, if your company buys a plane used only for business, the company can deduct its entire cost in the year that it’s placed into service. The aircraft is ineligible for this immediate write-off when: 1) neither the 100% bonus depreciation rules nor the Section 179 small business expensing rules apply or 2) the taxpayer has elected out of 100% bonus depreciation and hasn’t made the election to apply Sec. 179 expensing. Other rules and limits apply in certain situations. Contact us to learn more.