Thinking about buying a new airplane? Time is running out to take advantage of bonus depreciation.
The Small Business Jobs Act of 2010’s Bonus Depreciation benefits expire at the end of the year. “If you’re going to take advantage of this opportunity, you should do so quickly,” said Eric Groves, Chief Operating Officer of Special Services Corporation (SSC), an aircraft sales, service and charter company located at South Carolina’s Greenville Downtown Airport (GMU).
“There are some great incentives out right now. In fact, we have spoken to multiple people who are considering new aircraft rather than used because of this incentive program,” added James Stephens, an aviation account specialist with SSC.
Bonus depreciation allows 50% of the cost of eligible assets to be deducted in the year the property is acquired. The remaining 50% remains eligible for depreciation according to normal depreciation rules. To be eligible, the property must be used more than 50% of the time for business purposes predominantly inside the United States, explained Steve Wiley, aviation account specialist with SSC, who noted that bonus depreciation could also apply to new parts, components and avionics.
For more specifics on bonus depreciation, consult your tax advisor or Advocate Consulting Legal Group at AdvocateTax.com For more information about Special Services Corporation: SpecialServicesCorp.com or contact James Stephens at 864-242-3383.