The end of the year rush to purchase and close on business aircraft starts this week, even though Bonus Depreciation is only 60% this year, it is still a driving factor for many aircraft purchases.

The big question remains...

What happens next year?

If Trump wins does that guarantee 100% Bonus Depreciation in 2025? If so, does that mean they will make 100% retro for 2023 and 2024?

If Harris wins, does that mean no Bonus Depreciation? Can they take that hit to the economy?

WOW when I purchased my new 1974 V35B N4462W D9603 the bonus depreciation, that made it possible for me, was 10%. Now, if I was still in the new aircraft market, I'd be all over 60%. Anyway, you'll know, after the election results are in, if waiting is a better option!!!

I saw the title of that post and thought "Chip McClure or Rick Gavin, please pick up the green courtesy phone!" Thanks for sharing that information, Chip!

I think with the current tax law sunsetting AFTER 2025, there is a small chance they will change the bonus depreciation for 2025 and near zero chance they change it retroactively for 2023 and 2024.

I think it is most likely to return for 2026, and hopefully they make it permanent. I would love to see the tax code simplified, and eliminating all the rules associated with depreciation is a great place to start. It doesn't change tax bills, just the timing of them, so why not just include everything except for land as an expense?

Bonus depreciation has certain advantages.
It’s more than an alternate equivalent of a 5 year DDB write down.
Example which applies to many—
Owner pilot uses the plane 60% business. The 40% personal fraction is excluded in the standard depreciation expense in a normal 5 or 7 year depreciation schedule.

Circa 2022 100% Bonus Depreciation:
Purchase late in the year, let’s say December and use plane in December—could be a single flight—for 100% business. Take 100% write-off depreciation in that tax year.
Future business use need only be 51% use qualify even though 100% write-down was taken. Difference can be substantial.

Disclaimer I’m not a CPA