Bonus Depreciation Returns For Aircraft Purchases

Recently, Congress passed "The Recovery Rebates and Economic Stimulus For The American Paople Act of 2008". Great news for aircraft buyers and it includes both new and used aircraft. The Act provides for significant acceleration of deductions. The aircraft must be used more than 50% of the time for business travel, the taxpayer cannot make captital investments exceeding $1,050,000 per year. If the taxpayer invests less than $800,000, he/she is entitled to expense the first $250,000 and then calculate depreciation on the balance.

There is also a taxable income limitation. The maximum amount that a company may expense is restricted to the amount of taxable revenue from all combined business activities and does include wage income paid to taxpayer(s) for the purpose of this calculation. Naturally, it is wise to seek professional accounting assistance when determining whether a purchase qualifies under the act.

Interest rates are presently the lowest in years. Most Lenders nationwide offer terms to twenty years and require a minimum of ten percent down payment. Interest paid throughout the taxable year may also be expensed as in the past. Now, more than any time in the past, aircraft ownership makes financial sense.

David R. Madden - Executive Vice President/Airline Transport Pilot
Aircraft Banking Centers, Inc. offers long term, fixed and variable rate aircraft
financing programs as well as aquisition consulting and appraisals.
AircraftBanking.com
(800) 814-6682

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