““[Bill Gates] has been historically one of my best supporters…One of my favorite e-mails he ever sent me…I proposed this crazy project. And he sent back this two-line response: ‘This has got to be the craziest thing you’ve ever suggested. Please proceed.’” ”
Another tax benefit for aircraft buyers
If you're in the market for a new business aircraft, the time to buy could be now. The reason is the bipartisan Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which became law on December 17. The Act includes 100-percent expensing for tax purposes of investments in capital assets, such as business aircraft, purchased between Sept. 8, 2010, and Dec. 31, 2011. In some cases, aircraft may qualify for 100-percent bonus depreciation even though they are delivered in 2012. However, "this expensing [is] like the current bonus depreciation," according to Mike Nichols, vice president of the National Business Aviation Association, and therefore applies only to factory-new aircraft. Another provision extends the current 50-percent bonus depreciation from Jan. 1, 2012, to the end of 2012.
The Tax Relief Act "adds a significant accelerator to buyers' decisions," said David Wyndham, vice president of aviation data supplier Conklin & de Decker. "Companies looking at new aircraft will be more inclined to purchase sooner."
BJT columnist Jeff Wieand will weigh in on the new tax provisions in an upcoming issue.