A one-year extension of the accelerated bonus depreciation for general aviation aircraft purchases was included in S.1637, the Jumpstart Our Business Strength (Jobs) Act, which the Senate passed by an overwhelming 92-5 vote last month. The next step is for the House of Representatives to pass similar legislation.
Pushed by President Bush for legislation intended to stimulate the nation’s economy, Congress has taken action on two bills that may affect the purchase of new aircraft by boosting depreciation deductions. While the bills use the term “qualified property” as eligible for depreciation deductions, new aircraft could possibly fit that definition.
Conklin & de Decker (Booth No. 1241) announced the release of its Life Cycle Cost Version 7.2 aircraft budget analysis software, including a new “maintenance cost matrix” that lets users view maintenance costs in five-year increments. The feature provides a better picture of predicted budget adjustments as an aircraft gets older, according to the company.
If you are thinking of starting a business aviation charter or management company, consider sending as many of your company’s managers as possible to Conklin & de Decker’s Commercial Operators & Management Tax Course. The two-day seminar goes into great depth about the myriad subjects that any charter/management company will eventually encounter.
The tax committee of the NBAA will host two events in conjunction with its 57th annual meeting and convention in Las Vegas in October. The NBAA 13th Annual Tax, Regulatory & Risk Management Conference (previously known as the NBAA Tax Conference) is scheduled for October 10 and 11 at the Las Vegas Hilton.
Before bailing out last month for the usual summer vacation, the House and Senate took no action on the tax bill that would have extended the bonus depreciation benefits allowance. Extension of the bonus depreciation benefits for certain business aircraft buyers is part of a larger tax package to be decided, and that is being held up by battles over items unrelated to the bonus depreciation.
On Monday (June 13), the Internal Revenue Service is scheduled to officially publish IRS Notice 2005-45, Deductions for Entertainment Use of Business Aircraft. This notice will provide revised guidance to aircraft operators on the deductible amount of business expenses for use of a corporate aircraft for "entertainment" (personal use) that were imposed by the American Jobs Creation Act of 2004.
The House of Representatives approved the American Jobs Creation Act of 2004 (H.R.4520) on June 17, paving the way for a one-year extension of the time allotted to place into service business aircraft purchased under the accelerated-depreciation tax bonus.
Personal use of corporate aircraft is coming under increasing attack by Congress.
A bill has been submitted in the House of Representatives that seeks to restrict a company’s ability to deduct certain portions of a flight conducted for personal use.
Titled the Corporate Jet Tax Shelter Reform Act of 2004, H.R.4352 was referred to the House Ways and Means Committee for further action.
Although the accelerated-depreciation bonus has been credited with a pickup in orders for new business jets, the General Aviation Manufacturers Association is encountering rough going in the Senate over its efforts to get the tax break extended.