Trump Tax Cuts Make Buying a Private Jet More Appealing
President Donald Trump’s recent tax bill—the 2017 Tax Cuts and Jobs Act (TCJA)—has been a contentious issue for some Americans, but if you’ve been leaning towards buying a private jet, these changes should be welcomed with open arms. As we all know, jet ownership is a major investment, but these new tax regulations are designed to make buying big-ticket items more palatable, as the full amount can be written off on your tax return.
Of course, once you buy a private jet, you’ll need to figure out what to do with it. One of the best options is to work with an aircraft management company with experience to maintain your investment and make it generate revenue. Stratos Jet Management and Consulting is an agency that works on behalf of clients for jet sales, acquisitions and management.
Bonus Depreciation for New and Used Assets
Under previous legislation, aircraft owners were permitted to depreciate between 30 and 50 per cent of their assets. The amended act provides for 100 per cent bonus deprecation, allowing aircraft owners the immediate deduction of the cost of aircraft and placed in service after Sept. 27, 2017. This applies to new and pre-owned aircraft, including both commercial and non-commercial.
In order to take full advantage of the depreciation, aviation consumers should consider purchasing an aircraft before Dec. 31, 2022. After that, the Act will initiate an annual phase-down of 20 per cent until the incentive ends in 2027.
In the case of pre-owned aircraft, the Act contains a stipulation that the purchaser cannot have used the aircraft prior to acquisition.
For a more detailed look at this, check out this article by the National Business Aviation Association (NBAA) titled: New Depreciation Rules Under the 2017 Tax Act.
Vast Industry Experience
Even if you’re familiar with the private aviation industry, it’s always a good idea to have someone in your corner who does this for a living. Whether you’re buying a private jet or selling one, our experienced sales associates can help you in several key areas:
- Accurately appraising aircraft value
- Maximizing asking price when selling
- Identifying potential problems when buying used aircraft
Buying a Used Jet
Not everyone wants to pay the full ticket price for a brand new private jet. Fortunately, the tax write-offs offered in the Republican’s TCJA tax bill apply to pre-owned jets, as well as new ones.
Given the rigorous maintenance programs that private jets are forced to undergo, consumers can buy used private jets with confidence. With the expert advice and representation of a private jet consultant, you can identify which makes and models are:
- Best suited for your private aviation needs
- Easier and less costly to maintain compared to class competitors
- Most likely to hold their value and offer a solid return on investment
Additionally, by having one of our experienced sales associates represent you throughout the buying or selling process, you’re more likely to get a favorable outcome.
Part 135 Management Placement Services
Obviously, one of the main perks of buying a private jet is that you get to enjoy it whenever you want. But what about those times when you’re not using it? Our consultants are connected with the most reputable Part 135 charter operators in the industry. We work on behalf of our clients to place their aircraft into a charter service so that they not only generate income, but also receive proper care and maintenance. Our agents will help ensure you receive:
- Fair contract negotiations with operating companies
- Maximum productivity of your asset
- Ongoing aircraft monitoring reports
Ease into Jet Ownership
If you’re considering aircraft ownership, just remember that it’s not a decision that you should take lightly. One way to test the waters is to charter a private jet first. That way, you get the experience of luxury air travel, without the financial commitment.
If you’re considering buying a private jet, talk to Stratos Jet Management and Consulting. We offer a comprehensive range of aircraft management solutions to help you maximize your asset’s productivity.