Congress renewed bonus depreciation for new business aircraft and you can generate tremendous income tax savings by purchasing a Pilatus PC-12 NG in 2016.
Income tax planning opportunities include: personal use of a business aircraft, related party leasing rules for listed property, passive activity loss, hobby loss rules and the special documentation requirement to support the business use of the aircraft. Sales and use tax planning opportunities vary depending on the state that serves as the home base of the aircraft. The inter-relation and operation of the Internal Revenue Code, state sales and use tax rules and the Federal Aviation Regulations create unique planning opportunities for business aircraft owners.
The following table illustrates the amount of tax depreciation and potential income tax savings generated from the purchase of a 2016 Pilatus PC-12 NG, based on 100% business use, FAA Part 91 operator.
The above information represents an example scenario and should not be considered tax advice. Individual tax circumstances vary. Please seek tax council from an independent professional. For expert aviation tax guidance specific to your situation, please connect with our friends at Aviation Tax Consultants, LLC: Daniel Cheung, CPA, 1-800-342-9589, firstname.lastname@example.org.