In Times Of Economic Uncertainty, This Program May Be A REALLY Big Help
Let's face it, these are not great times for aviation... but for those of us willing to brave the economic storm, there is help with the rocky road to aircraft ownership... and it's a big aid, indeed.
But check this -- The Recovery Rebates and Economic Stimulus for the American People Act 2008 offers accelerated tax deductions to qualifying businesses that take delivery of a new aircraft before the end of 2008.
ANN checked with one of the true experts in aircraft sales, our friend Fred Ahles, from Premier Aircraft Sales, who runs one of the most professional aircraft sales operations we've seen. Fred arranged for us to conduct an interview with Lou Meiners, CPA, of Advocate Consulting. Lou has been around the aviation biz for a while... having served as the tax advisor of a large commercial airline for over 20 years, while serving as President of a fixed base operator providing charter services, while also operating a flight school. As President of Advocate, Lou tells ANN that has served thousands of aircraft owners with tax, regulatory, and planning advice over the last 15 years.
Lou notes that, "The Economic Stimulus Act of 2008 includes an unlimited 50% bonus depreciation for new assets placed in service during 2008. A special rule relating to certain qualifying aircraft will extend bonus depreciation on new aircraft purchased in 2008 but delivered in 2009. The 50% bonus depreciation allows an immediate deduction of 50% of the cost, followed by accelerated depreciation on the balance. Noncommercial operators would generally therefore be entitled to deduct 60% of qualifying assets in the year of acquisition. The balance of the asset will be written off in the remaining five years under an accelerated method."
It sounds complicated... and at times, it can be... hence the reason we went to an expert for an interview covering some of the basic questions that a potential aircraft owner might have in taking advantage of this program -- which pretty much expires at the end of the year.
Aero-TV Checks Out Bonus Depreciation Issues With Lou Meiners (Part 2)
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