Private Plane Ownership
Imagine grabbing a drink with your college friends and one of them says, “let’s go to Vegas” — or Mammoth — or San Diego — or anywhere within 1700 miles — and being able to fly within an hour in your own private plane.
In addition to being the most luxurious and flexible form of travel, owning a private plane can provide major tax benefits. Here are some of the potential benefits and considerations, especially if your tax liability is over a million dollars.
100% bonus depreciation for purchasing
2022 and perhaps 2023, depending on circumstances, may be the last chance to take advantage of the 100% bonus depreciation for jet purchases. The 2017 Tax Cuts and Jobs Act, included changes that made buying a private plane more attractive than ever. And until the end of this year, and potentially through 2023, the entire cost of either a new or used aircraft can be written off in the first year for business use. This often wipes out high-bracket tax bills for those who owe tens of millions to the Internal Revenue Service. In this scenario, the plane can essentially be viewed as “free.”
Tax-exempt use of aircraft
If you own a private aircraft and use it exclusively for business or charitable purposes, you are allowed to exclude the cost of its operation from your federal income tax. This exclusion is available to Corporations, Partnerships, and Trusts that own the plane. Our tax attorneys and accountants will advise you on the best structure for you to maximize savings and ownership.
Deductible Operational & Maintenance Costs
Maintenance expenses are tax deductible. Included in such “maintenance costs” are minor and major repairs, and crew member salaries, sometimes being able to reduce your taxable income by 100%.
Additionally, by owning a plane instead of renting one or buying tickets every time an employee needs a flight (reducing upcharges like
Tax-free Sale of Aircraft
States typically impose a sales or use tax on purchases of products within the state, but many states recognize such taxes on private aircraft purchases would create a significant burden on the purchasers. As such, states exclude private jets from these taxes. Some states exclude certain types of aircraft while others do not, so it’s important to include this in your ownership planning and structuring – something S9’s resources have years of experience implementing.
“Ultimately, owning a private plane is more than a write-off. It’s a way to increase time and efficiency while having fun and traveling in luxury,” says Zeeshan Moha, CFO of Stratus 9. “With S9’s leaseback program, your plane is an investment that can generate revenue when not in use – and we make the process easy, seamless, and fun,” added Pierre Badin, Stratus 9 CEO. In addition to the pilots and aviation staff, S9 has accounting and legal partners who specialize exclusively in aviation, ensuring that benefits are maximized.