Tax Benefits of Owning a Private Aircraft
Updated: Jul 25
Enjoying the luxury and efficiency of flying private isn't the only benefit of owning a private aircraft. Continue reading to find out what tax benefits your aviation asset can qualify you for.
Private aircraft owners can claim 100% depreciation
For years business aircraft have been viewed as a burden on companies’ spreadsheets. However, with the implementation of new tax credits, many savvy companies are flipping the script and are putting their aviation assets to work. In 2017, a new wave of tax cuts and job acts were implemented, making the purchase of a private aircraft more desirable than before. Private aircraft owners are now able to claim 100% bonus depreciation on their asset within the first-year of buyer use. In other words, owners are eligible to receive a 100% tax write-off on their million-dollar asset while also enjoying the convinces of flying private. Additional expenses associated with private aircraft ownership such as fuel, maintenance, and management costs are also considered tax-deductible if the aircraft is used for businesses purposes 50% of the time. It is important to note that there are specific qualifications needing to be met to receive these benefits. The aircraft’s use must be eligible for the MACRS depreciation standards and satisfy the IRC 280F 50% rule.
Additional perks of owning your own aircraft
In addition to these attractive tax breaks, private aircraft owners also have access to further ownership perks. Through private aircraft ownership, one can increase their travel efficiency, amplify their traveling pleasures, and maximize their privacy and security while flying. Private aircraft owners also have the option to leave the stress of booking flights, managing their aircraft, hiring a flight team, conducting maintenance operations, and organizing ground travel/hospitality accommodations to an aircraft management team. MPIJet offers effective and customized management plans for all aircraft owners. Each management plan is tailored to fit the aircraft owner’s needs, making aircraft ownership easier than ever. Finally, private aircraft owners have the opportunity to charter their aircraft, putting money in their pocket or paying down their aircraft payments: a win-win situation.