Aircraft
Preowned Update: June 2018
Buyers of used aircraft can now benefit from bonus depreciation. But how big a deal is that, really?

If you’re shopping for a preowned business aircraft, the 2017 federal tax law’s biggest news might be that you can now take advantage of 100 percent bonus depreciation, a benefit previously reserved for purchasers of new airplanes. The writeoff for used aircraft (those placed in service by Jan. 1, 2027) “will help the business aviation industry turn the corner” this year, according to the National Aircraft Resale Association (NARA), which represents some major airplane brokers.

Will bonus depreciation really accomplish that goal? And if you were to purchase a preowned model, how beneficial would this change in tax policy be for you?

In this article