Tax Write-Off Isn't ONLY For New Aircraft

Recent changes to US tax code regarding bonus depreciation -- part of the massive federal stimulus bill passed last month -- don't just apply to pilots looking to purchase brand-new aircraft. Officials in Cessna Aircraft Company's Customer Service organization note enhancements made to existing business aircraft in 2009 may qualify for the new bonus depreciation tax treatment, as well.

Cessna is quick to note the company isn't qualified to provide tax advice -- that's what accountants and tax professionals are for -- but adds that, depending on the tax accounting treatment a company uses for the upgrade, the depreciation could amount to healthy savings for owners of existing Cessna business aircraft.

"This is a good time to consider enhancements to your Citation, such as a glass cockpit, productivity features in the cabin, upgraded operational or navigational systems," said Mark Paolucci, senior vice president, Cessna Customer Service. "As long as the upgrade adds value to the aircraft or increases the life of the aircraft, it may qualify for favorable bonus depreciation tax treatment in 2009."

Paolucci added the planemaker offers a number of upgrades for Citations such as communications upgrades, avionics upgrades, TCAS and radar upgrades, enhanced instrumentation, RVSM, WAAS/FMS updates, interior upgrades, and new paint.

The upgrades must be installed on the aircraft before December 31, 2009 to qualify. Of course, the potential depreciation write-off doesn't apply only to Cessnas...

FMI: www.cessna.com, www.aviationtaxconsultants.com