A major incentive has returned to the aviation industry in 2025: 100% bonus depreciation for private aircraft. This tax advantage allows qualifying buyers to deduct the entire cost of an aircraft in the same year it’s placed into service—an opportunity that can significantly reduce the overall financial impact of an aircraft purchase.
What Is Bonus Depreciation?
Bonus depreciation is a tax provision that allows businesses to accelerate the depreciation of qualified assets. In this case, aircraft purchased and placed into service on or after January 20, 2025, are eligible for 100% bonus depreciation, provided the aircraft is used for business purposes more than 50% of the time.
Key Benefits
- Full Immediate Deduction: Buyers can write off the entire purchase price of the aircraft in the same tax year it enters service.
- Expanded Eligibility: The program applies not only to brand-new jets but also to pre-owned aircraft, helicopters, turboprops, and more.
- Improved Cash Flow: The immediate deduction can significantly reduce taxable income, improving liquidity and financial planning for businesses.
Why Timing Matters
Now that 2025 is halfway over, it is a critical time to begin planning. The aircraft acquisition process—including sourcing, inspections, financing, and delivery—can take several months. Buyers who wait until late in the year may face increased market demand, fewer available aircraft, and tighter transaction timelines.
By starting early, you can ensure that your aircraft is ready to be placed into service before the end of 2025, positioning you to take full advantage of the available tax benefits.
Final Thoughts
The reinstatement of 100% bonus depreciation presents a compelling opportunity for individuals and businesses using aircraft for business travel. With broader eligibility and significant financial incentives, this provision is poised to positively impact purchasing decisions in the coming year.
As always, consult with a qualified tax professional to evaluate how this program aligns with your specific financial and operational goals.
Contact sale@ternjetsales.com to get expert advice and connect with the right professionals for your journey to success.
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