Tax Implications of Owning a Corporate Aircraft

If your business is successful and you do a lot of business travel, you may have considered buying a corporate aircraft. Of course, there are tax and non-tax implications for aircraft ownership. Let’s look at the basic tax rules. Business travel only In most cases, if your company buys a plane used only for business, the company can deduct its entire cost in the year that it’s placed into service. The cases in which the aircraft is ineligible for this immediate write-off are: The few instances in which neither the 100% bonus depreciation rules nor the §179 small business expensing rules apply or When the taxpayer has elected out of 100% bonus depreciation and hasn’t made the election to apply §179 expensing. In those cases, the depreciation schedule...