“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]. ”
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.