Mon, Nov 24, 2008
Let's face it, these are not great times for aviation... but for
those of us willing to brave the economic storm, there is help with
the rocky road to aircraft ownership... and it's a big aid,
indeed.
But check this -- The Recovery Rebates and Economic Stimulus for
the American People Act 2008 offers accelerated tax deductions to
qualifying businesses that take delivery of a new aircraft before
the end of 2008.
ANN checked with one of the true experts in aircraft sales, our
friend Fred Ahles, from Premier Aircraft Sales, who runs one of the
most professional aircraft sales operations we've seen. Fred
arranged for us to conduct an interview with Lou Meiners, CPA, of
Advocate Consulting. Lou has been around the aviation biz for a
while... having served as the tax advisor of a large commercial
airline for over 20 years, while serving as President of a fixed
base operator providing charter services, while also operating a
flight school. As President of Advocate, Lou tells ANN that has
served thousands of aircraft owners with tax, regulatory, and
planning advice over the last 15 years.
Lou notes that, "The Economic Stimulus Act of 2008 includes an
unlimited 50% bonus depreciation for new assets placed in service
during 2008. A special rule relating to certain qualifying aircraft
will extend bonus depreciation on new aircraft purchased in 2008
but delivered in 2009. The 50% bonus depreciation allows an
immediate deduction of 50% of the cost, followed by accelerated
depreciation on the balance. Noncommercial operators would
generally therefore be entitled to deduct 60% of qualifying assets
in the year of acquisition. The balance of the asset will be
written off in the remaining five years under an accelerated
method."
It sounds complicated... and at times, it can be... hence the
reason we went to an expert for an interview covering some of the
basic questions that a potential aircraft owner might have in
taking advantage of this program -- which pretty much expires at
the end of the year.
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