BeechTalk - BT

Username Protected · **Posted:** 19 Dec 2017, 22:07

Username Protected wrote:

Hey, I'll give the JC response myself -- only 50% chance we would have even had the failure in a single :dancing:

I'll suffer two engines failures where the outcome is a landing and a repair rather than one where the outcome is a crash and total loss or worse.

Mike C.

Username Protected · **Posted:** 19 Dec 2017, 22:24

Username Protected wrote:

If the bonus/179 are important to you this year, then just remember that in most cases you may roll the depreciation without recapture into another aircraft next year and beyond should the TBM be unsuitable. IANACPA YMMV ETC. talk to ATC or Advocate of course.

I added the bolding as I believe this refers to the use of a 1031 Exchange. It appears that that tool will no longer be available for personal property (aircraft) should the tax "reform" bill pass this week. This isn't a political comment just a statement of fact.

Username Protected · **Posted:** 19 Dec 2017, 22:48

Username Protected wrote:

I'll suffer two engines failures where the outcome is a landing and a repair rather than one where the outcome is a crash and total loss or worse.

Mike C.

Comparing the King Air 200 and the PC12 which have relatively similar mission profiles and neither require type ratings, this has not been the case. For whatever reason in recent years, the King Air 200 has had several more fatal crashes due to engine failures than the PC12. At least one fatal crash flown by a professional pilot recently out of training.

Username Protected · **Posted:** 20 Dec 2017, 14:40

Username Protected wrote:

The new tax bill contains a provision that allows 100% of expensing of certain assets, so the elimination of the 1031 shouldn't matter if you buy and sell in the same year.

I think that may be very dependent upon the size of the purchase. Section 179 depreciation is now limited to $1 million dollars. I have read that the limit for immediate expensing (which I am not clear is different than 179) is $2.5 million and there has been some discussion that Bonus Depreciation might be extended to used assets but I cannot find anything definitive, with respect to what passed, on that either.

Username Protected · **Posted:** 20 Dec 2017, 16:29

Username Protected wrote:

I think that may be very dependent upon the size of the purchase. Section 179 depreciation is now limited to $1 million dollars. I have read that the limit for immediate expensing (which I am not clear is different than 179) is $2.5 million and there has been some discussion that Bonus Depreciation might be extended to used assets but I cannot find anything definitive, with respect to what passed, on that either.

No tax attorney here, but I was reading the tax bill and didn't see any limits on the 100% of expensing of business assets other than it started a phase out in 5 years and eventually expired. I think the bonus depreciation and 179 limits were changed but didn't necessarily expire. After all the dust settles, I'd like to get a thread started with how the new tax bill affects aircraft purchases.

Username Protected · **Posted:** 20 Dec 2017, 19:14

Username Protected wrote:

I think that may be very dependent upon the size of the purchase. Section 179 depreciation is now limited to $1 million dollars. I have read that the limit for immediate expensing (which I am not clear is different than 179) is $2.5 million and there has been some discussion that Bonus Depreciation might be extended to used assets but I cannot find anything definitive, with respect to what passed, on that either.

No tax attorney here, but I was reading the tax bill and didn't see any limits on the 100% of expensing of business assets other than it started a phase out in 5 years and eventually expired. I think the bonus depreciation and 179 limits were changed but didn't necessarily expire. After all the dust settles, I'd like to get a thread started with how the new tax bill affects aircraft purchases.

Username Protected · **Posted:** 20 Dec 2017, 19:57

Username Protected wrote:

The new tax bill contains a provision that allows 100% of expensing of certain assets, so the elimination of the 1031 shouldn't matter if you buy and sell in the same year.

This assumes your circumstances are such that you can take advantage of this to the full extent in the first year. If you are planning well, you may very well be able to afford an expensive asset like a plane but not have the income to offset.

Moreover, if you are coming from a situation where you had fully depreciated the asset as a business expense and you no longer have the situation where you can claim business use, then you will be in the double whammy situation of recapturing all the depreciation on sale and, perhaps, not being able to offset the new purchase via the expensing provisions.