With the business aviation industry booming, there hasn’t been a better time to buy your own private jet. Federal, State, and Local governments are offering multiple tax excises to promote jet sales all around the country. Jets offer multiple benefits and now with tax laws, there’s more ground to cover to really take advantage of.
Entities and individuals looking for opportunities without borders are purchasing their own private aircraft which brings them to unexplored territory such as tax implications that are unique to the needs of each business. Utilize to your advantage current Federal tax exemptions such as 100% Bonus Depreciation, current until December 31, 2022.
Business jet owners now evaluate neighboring states. Aircraft taxes law has become even more open to other private aircraft users since exemptions apply to certain operations, particularly with no state tax when purchasing New or Used aircraft. Many states also offer non-sales taxes applicable to aircraft, and the Fly Away period allows owners to purchase an aircraft at a state without paying its taxes if you leave the state within a certain period of time. If the aircraft stays longer, then the state may charge local fees, also known as hangered.
"The Treasury Department and the Internal Revenue Service today released the last set of final regulations implementing the 100% additional first-year depreciation deduction that allows businesses to write off the cost of most depreciable business assets in the year they are placed in service by the business." - IRS
Tax Laws are written to promote additional jobs and positively impact all communities, the reason why they are advantageous exclusively when owning Business jets for business activities.
Supplementary Planning is key for tax purposes, considering aircraft operating expenses are deductible as well, preparing from the start to log all aircraft details records applicable to business use since personal use has few advantages. At Login Aviation, tax implications are shown to each customer after surveying the aircraft usage for their business.
Florida, a strong aviation industry state, Senate and House is currently in the works with the passage to eliminate sales and use tax on aircraft, Senate Bill 786 – House Bill 6051, This will allow to attract more new business jet owners and increase aviation activity in our sunshine state.
With much more in the work of each State, It's an exciting time in the Business and General Aviation, a setting where purchasing your own aircraft can be a rewarding achievement and become part of the private aviation travelers.
