Money » Taxes, Laws & Finance

March 26, 2014
The advantages of bonus depreciation are often over estimated, especially if an aircraft's availability for super-accelerated tax write-offs drives up the price.  (Illustration: John T. Lewis)
To start writing off your newly acquired jet for tax purposes in the U.S. you have to do more than buy it; you have to “place it in service” in your business. In recent years, the availability of “bonus” depreciation has only upped the ante on satisfying this Internal Revenue Service requirement.
March 5, 2014
Illustration: Fotolia
Business jet finance has settled into a predictable—and more sustainable—groove after the mad scramble of 2007 and the deafening silence of
November 21, 2013
If an employee travels on the company aircraft for personal purposes, the IRS treats the flight as a perquisite and the employee as a recipient of taxable income.
Calculating the cost of personal use is as complicated as it is important. When an employee takes a personal flight on his company’s aircraft, how do you calculate the trip’s cost or value? The answer depends on who’s asking the question and why.
October 7, 2013
If the lease rate is too low, a state may impute its own rate or perhaps disregard the lease and charge use tax on the full purchase price. (Illustration: John T. Lewis)
Good news: rates are at record lows. Bad news: a rock-bottom rate can trigger trouble.
August 1, 2013
Maybe not, but you’d be wise to carefully consider the question.Unlike real estate lenders, most aircraft lenders don’t require title insurance, so airplane buyers rarely even know about it, let alone purchase it. That can be a big mistake.
June 26, 2013
Patch the holes in your aviation insurance
Two corporate aircraft runway accidents in recent years underscore the importance of understanding your aviation insurance policy and communicating key details to all pertinent parties. The 2007 accidents—in Nova Scotia, Canada, and Santa Barbara, California—resulted in no serious passenger injuries but caused millions of dollars’ worth of damage.
June 26, 2013
Global 6000
Interest rates remain at historic lows, in part due to the Federal Reserve Bank’s continued efforts to keep them there. Doesn’t this mean that you should finance your next business jet purchase?
May 13, 2013
Setting up an LLC just to own and operate your jet could mean asking for trouble.
If I owned a business jet, my worst nightmare would go something like this: my airplane is involved in an accident and I get sued for zillions of dollars in damages.
February 26, 2013
The industry is already subject to substantial regulation. A Forbes 400 client purchasing an airplane recently faced the kind of scrutiny normally reserved for convicted felons. (Illustration by John Lewis)
Having emerged battered and bruised from the 2008 recession, aircraft lenders face fresh challenges. While worldwide economic woes linger like a bad cold that won’t go away, these lenders can expect accounting and regulatory changes that may have a significant impact on their business.
January 28, 2013
Buying business aircraft: The board member’s role
For most corporations, the purchase of a business jet represents a major transaction that requires approval of the board of directors. What should the directors consider when the company is thinking about buying an aircraft?

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Quote/Unquote

“When you get into the larger aircraft it becomes like a hotel, with dozens of staff supporting the plane based in a galley area down below. You have very comprehensive cooking facilities, and on larger aircraft we have looked at theatres, with spiral staircases and a Steinway grand piano. The limitations for what you can put inside a plane are pretty much the limits of physics, and even money cannot always overcome that. Even so, people are still always trying to push [the limits]. ”

-Howard Guy of Design Q, a UK-based consultancy