• Bonus Depreciation and Corporate Aircraft
  • October 16, 2009 | Author: Edward H. Kammerer
  • Law Firm: Hinckley, Allen & Snyder LLP - Providence Office
  • The Internal Revenue Code provides substantial tax benefits to owners of qualifying business aircraft. Perhaps the most significant benefit available to owners of business aircraft is the depreciation deduction that allows the owner of an aircraft to recover the cost of its aircraft. As a result of recent legislation, the Job Creation and Worker Assistance Act of 2002 (the "Assistance Act"), the benefits of depreciation have been improved for certain types of "qualified property." This article will explore the scope of the new depreciation benefits for business aircraft and the requirements that must be satisfied in order for a business aircraft to qualify for the accelerated depreciation benefits. Please note that the Assistance Act provides additional depreciation benefits for owners of property other than aircraft. This article, however, will focus only on those provisions of the Assistance Act that affect aircraft owners.