With the new tax reform there are significant implications for aircraft owners. Here are some of the highlights:
– A significant change involves Section 1031 exchanges, they are no longer applicable for aircraft transactions.
– A significant advantage is that aircraft can now be depreciated 100% during the first year of purchase. The law be phased out over 4 years beginning five years from now: 2023 – 80%, 2024 – 60%, 2025 – 40%, 2026 – 20%.
– The Bill disallows all entertainment expenditures, this could have a profound effect on aircraft owners.
We are hopeful that tax reform will serve its intended purpose to supercharge economic growth and that this will in turn result in aerospace industry growth.