David L. Savoie (Dave) was the founder and owner of US Aircraft Finance, a company that provides financing solutions for aircraft owners and operators across the country. He passed away on May 5th, 2023.

Dave was born with a passion for flying and service to his country. He joined the US Air Force as a young man and served for 22 years, rising through the ranks to become a highly decorated Lt. Colonel, pilot, and leader. He flew countless missions, including combat operations, and earned numerous awards and commendations for his courage, skill, and dedication to duty.

After retiring from the Air Force, Dave worked in the banking industry for over 30 years but found it challenging to provide the level of service he desired due to various interferences. Dave decided to bring his two passions of aviation and finance together and in 1998, he founded US Aircraft Finance, driven by a mission to offer unbiased and reliable customer service in a field he understood and loved. He saw the need for a dedicated and knowledgeable financing service that could streamline the complexities of aviation financing and offer a seamless customer experience.

Dave’s extensive knowledge of aircraft and financing was instrumental in building US Aircraft Finance into a trusted and respected name in the aviation industry. He helped countless individuals and businesses achieve their aviation goals and dreams by providing personalized financing solutions and exceptional customer service. Today, US Aircraft Finance stands as a testament to Dave’s entrepreneurial spirit, dedication to excellence, and commitment to helping others.

Dave’s legacy is one of service, innovation, and inspiration. He embodied the values of duty, honor, and country, and his commitment to excellence and innovation was unwavering. He was a leader who inspired and empowered those around him, and his generosity and kindness were felt by all who knew him.

Dave will be missed dearly, but we take comfort in knowing that his legacy will live on. He leaves behind a thriving business that will remain Veteran-managed under the command of Veteran Alex S. Dubra whom Dave hand-picked and trained a decade ago. As the managing director and pilot himself, Alex has been instrumental in the continued growth of US Aircraft Finance and will continue on, in honor of Dave.

Fly high, Dave. You will be remembered as a hero, a leader, and a friend. Your legacy will continue to inspire and guide us for years to come.

Flying a private aircraft is a dream come true for many pilots, but financing that dream can seem daunting. Whether you’re a CEO, business owner, or general aviation pilot, figuring out how to finance your aircraft can be overwhelming. But don’t worry because we’ve compiled a comprehensive guide to help you navigate the process from start to finish. In this post, we’ll cover everything from budgeting to finding the right lender. So buckle up and get ready to take flight with our Pilot’s Playbook for Financing Your Private Aircraft.

Creating a Budget for Your Private Aircraft

Before financing a private aircraft, it’s crucial to create a realistic budget that includes all the costs involved in owning and operating the aircraft. Beyond the plane itself, other expenses to consider are maintenance, insurance, and fuel. These costs can vary depending on the aircraft’s type, model, and age, as well as its features and amenities, so researching the specific expenses associated with your chosen aircraft is a must when putting together your budget. And don’t forget to factor in financing and interest fees.

Sticking to the budget is equally important. To avoid any unexpected expenses or financial difficulties, borrowers can set aside a portion of their monthly income to cover aircraft expenses or create a separate savings account for aircraft-related costs. Regularly reviewing and adjusting the budget is necessary to reflect any changes in the borrower’s financial situation or the aircraft’s costs.

Providing Documentation for Your Loan Application

When applying for a loan to finance a private aircraft, be sure to provide the appropriate documentation, such as proof of income and employment, such as recent pay stubs, tax returns, or proof of assets. The lender will use this information to ensure that the borrower has a stable income and can make loan payments. Additional important documents that may be needed include proof of aircraft insurance, a purchase agreement, and any relevant licenses or certifications required to operate the aircraft.

To increase their chances of being approved for a loan, borrowers should gather all the necessary paperwork and promptly provide it to their lenders. Review the lender’s loan requirements ahead of time and prepare the required documentation well in advance of the loan application. Doing so can ensure a smooth loan application process.

Getting Pre-Approved for Financing Your Private Aircraft

Getting pre-approved for financing your private aircraft is a vital step in the loan application process. Borrowers can determine how much they can afford to spend on an aircraft which provides negotiating power when shopping for one. The pre-approval process involves submitting an application to the lender and then turning over the required financial documentation. If the borrower meets a lender’s criteria, they will provide a pre-approval amount.

One of the significant advantages of pre-approval is that it can expedite the loan application process. Since the borrower has already provided all the necessary documentation, the lender can quickly process the application and make a decision. This fast turnaround time can be particularly beneficial when purchasing a popular aircraft model, where competition can be intense.

Pre-approval also demonstrates that the borrower is a serious buyer and has the financial means to complete the transaction. With a pre-approval in hand, the borrower can approach aircraft sellers with confidence and negotiate better prices or financing terms. While pre-approvals can help, they do not guarantee financing. The borrower will still need to complete the pre-closing documentation.

Exploring Different Lenders for Aircraft Financing

When it comes to financing a private aircraft, there are several options available for borrowers to explore. One option is to work with a traditional lender, such as a bank or credit union, to obtain a loan for the aircraft. These lenders typically offer competitive interest rates and loan terms, but they may have strict eligibility requirements and may take longer to process the loan application.

Another option is to work with an aircraft financing company. These lenders specialize in providing financing specifically for aircraft purchases and may have more lenient eligibility requirements and faster loan processing times. Working with a trusted and experienced lender can help ensure a smooth financing process and a successful aircraft purchase or lease.

US Aircraft Finance: Your One-Stop Shop for Aircraft Financing and Insurance Needs

US Aircraft Finance (USAF) is a leading financial institution that offers a wide range of aircraft financing options to customers, with the ability to provide loans for purchasing, refinancing, and upgrades. Our loan options are tailored to meet the unique needs of our clients, and we offer competitive rates and flexible terms to help make aircraft ownership more accessible.

In addition to financing, USAF also provides aviation insurance to our customers. Our insurance options cover a large variety of aircraft types and uses, ensuring that our clients can get the coverage they need to protect their investments. We have immediate access to all the major A+ rated aviation insurance underwriters to provide our clients with the best coverage options and competitive rates.

At USAF, we pride ourselves on providing excellent customer service. Our experienced professionals work closely with our clients to help them understand their financing and insurance options, and we strive to make the loan process as fast and convenient as possible. Our team is available to answer any questions and provide support throughout the loan process and beyond, ensuring that our clients have a smooth and stress-free experience. Contact us today to learn more about how we can help you finance your dream aircraft.

When it comes to owning a business aircraft, there are several tax benefits that a business owner can take advantage of. However, these benefits are highly dependent on how the aircraft is used and how ownership is structured. If you’re a business owner considering an aircraft purchase, it’s important to be aware of the potential tax benefits available to you, as well as the rules and regulations governing their use. In this blog, we’ll explore some of the advantages of owning a business aircraft and what you need to know to take advantage of them.

Navigating Tax Benefits for Business Aircraft Owners

One of the primary tax benefits of owning a business aircraft is the ability to deduct the full cost of the aircraft from federal taxes if used for business purposes. This includes the purchase price of the private aircraft, as well as any upgrades or modifications made to it. Additionally, owners can deduct depreciation expenses for new or used aircraft over a period of time, further reducing their tax burden. Operating costs such as fuel, maintenance, insurance, and hangar fees can also be deducted when the aircraft is used for business purposes. However, it’s important to note that the IRS has complex rules governing how much the aircraft must be used for business for these deductions to be applicable. For example, if the aircraft is used for personal purposes as well as business, only the portion used for business purposes is eligible for deductions. Furthermore, the IRS may audit your records to verify your claims, so it’s important to keep accurate and detailed records of the aircraft’s usage. By taking advantage of these tax benefits, business owners can save a significant amount of money and improve their bottom line.

Depreciation deduction

Business aircraft owners can take advantage of the depreciation deduction, which allows them to deduct a portion of the aircraft cost over a set period of time, depending on factors like the aircraft’s useful life and depreciation method used. Under the Tax Cuts and Jobs Act, owners were previously able to deduct 100% of the cost in the year of purchase, but this provision ended in 2022. Currently, owners can deduct up to 80% of the price in the year of purchase.

However, there are requirements and limitations associated with the depreciation deduction. If the aircraft is used for both business and recreation, only the portion of expenses related to the business use can be deducted. Additionally, there are limits on the amount of depreciation that can be claimed each year, and the amount that can be deducted depends on the aircraft’s useful life and other factors. Furthermore, owners may need to recapture some of the depreciation deductions if they sell the aircraft for more than its depreciated value. It’s crucial to consult with a tax professional to ensure compliance with all of the requirements and limitations associated with depreciation deductions.

USAF: Your Partner in Aircraft Ownership

If you’re considering purchasing a business aircraft, financing through USAF could be a viable option. USAF offers loans to fit any budget, making it possible for more people to own an aircraft. Whether you’re looking to buy a new or used aircraft, USAF can help you finance it. With competitive interest rates, flexible payment terms, and a simple application process, USAF can make financing your aircraft a hassle-free experience.

Getting pre-approved online is fast and convenient, giving you an idea of what financing options are available to you before you start shopping for an aircraft. You can also speak with one of our financing experts who can guide you through the application process and help you determine the best financing option for your needs.

By financing your aircraft through USAF, you can take advantage of the tax benefits of owning a business aircraft while making manageable payments that fit your budget. And with our exceptional customer service and support, you can rest assured that you’re in good hands. If you’re interested in financing your aircraft through USAF, contact us today to learn more about our financing options and how we can help you achieve your aviation dreams.

Is Owning an Aircraft Right for You?

Are you considering aircraft ownership? While it can be a dream come true for many, it’s a big investment and there are many factors to consider.

Firstly, consider how owning an aircraft will benefit you. If you are a frequent flyer, owning an aircraft can offer you greater flexibility and convenience, allowing you to skip airport lines and baggage claims, travel in comfort, and have the freedom to travel on your schedule instead of an airline’s schedule. You’ll also be able to access more remote locations, that most commercial airlines can’t.

Businesses can significantly benefit from aircraft ownership, as it enables increased productivity and time savings. By owning an aircraft, you can easily visit multiple cities in a single day, attend multiple meetings in different locations, and still return home in time for important family commitments. This level of flexibility is simply not achievable with commercial airlines, and it can give your business a significant competitive advantage. By investing in an aircraft, you can optimize your travel schedule and make the most of your valuable time.

Another factor you need to consider is maintenance costs. Regular maintenance is essential to keep your aircraft safe and functioning properly, so it’s important to consider a budget for regular maintenance as well as unexpected repairs.

Lastly, consider how you plan to use the aircraft. Will it primarily be for business or personal use? Owning an aircraft can be a valuable asset for business travel, while still being extremely beneficial for one’s personal use. It’s also important to research the market and determine which aircraft models hold their value best. This is especially important if you plan to sell the aircraft in the future. If you’re unsure whether to purchase a new or pre-owned aircraft, check out our guide on how to choose.

Is Purchasing an Aircraft a Good Investment?

Unlike other modes of transportation that depreciate rapidly, such as cars or boats, an aircraft is a tangible asset that tends to hold its value well over time. With proper maintenance and care, an aircraft can retain its value and remain a valuable asset that can be sold or traded in for a newer model. This makes owning an aircraft an attractive investment option for those seeking a long-term asset that can deliver lasting value.

By understanding the advantages of aircraft ownership, you’ll be better equipped to make an informed decision about whether it’s the right investment for you.

Let USAF Help You Finance Your Aircraft

If you’ve decided to pursue aircraft ownership, USAF can help you with the financing process. As an independent, full-service, national direct aircraft finance company, USAF is committed to providing excellent customer service and competitive rates and terms for aircraft financing.

We offer financing for certified factory-built fixed-wing aircraft as well as aviation insurance for both new and used General Aviation aircraft throughout the Continental US. Our process is simple and convenient, and our team of experts will guide you through every step of the way to ensure a smooth and hassle-free experience.

At USAF, we understand that purchasing an aircraft is a significant investment, and we strive to make the process as straightforward and transparent as possible. Our competitive loan rates and personalized approach set us apart from other financing providers in the industry. If you’re ready to take the first step towards aircraft ownership, we encourage you to fill out our free quote form on the USAF website. Our team of experts is dedicated to providing excellent customer service and personalized financing options that meet your unique needs and budget. By filling out the form, you’ll be one step closer to reaching your dream of aircraft ownership. Don’t hesitate to contact us for any questions or assistance with the process. Let’s work together to make your aircraft ownership goals a reality.

Buying an aircraft is a major decision, and though it is an exciting prospect, it is necessary to be patient and not leap into a purchase unprepared. Taking the time to properly research and thoroughly understand your travel needs, purchase options, and financial requirements will ensure that your aircraft fits your wants and needs.

Let’s take a deeper look at how to choose the right aircraft and how U.S. Aircraft Finance is poised to help you make the best financial choices for your purchase.

Choosing the Right Aircraft

Careful deliberation of how you will use your aircraft will narrow your options and keep you from buying too much plane for your needs. How often and how far are you going to be traveling? Are you planning to use your aircraft for only business or leisure trips, or will it be used for both types of travel? Will anyone be traveling with you? Additional factors like trip distance, flight load, and common flight conditions are vital aspects to consider when determining the type of aircraft that will be best for you.

Another point to consider is whether to purchase a new or pre-owned aircraft. While there is a cost differential between buying new or pre-owned, that is not the only difference between the two. For example, new aircraft are highly customizable. While buyers can configure the plane to their hearts’ content, the plane may take longer to assemble. Some upgrades can be made to pre-owned planes at a later time, allowing you to purchase and have your aircraft with significantly less lead time.

Whatever your needs are, be diligent in analyzing which options make the most sense for your situation.

Get Pre-Approved

Knowing how much plane you can afford will keep you from setting your heart on an aircraft just outside your price range. The USAF loan qualification calculator will help you estimate just that. By entering your monthly income and debt payments, you will receive an estimate of the type of loan payment and loan amount that will work best for you based on your financial situation.

At USAF, we know our customers are eager to take off. That’s why we’ve streamlined the loan application. You don’t need to wait up to 30 days for a loan approval when working with USAF. Our fast-acting team typically approves loans within a day.

What Else is There to Do?

Once you know your aircraft needs and understand the costs and payments surrounding it, it’s time to pick out your plane. But is it that simple?

If you have the option, we highly recommend flying the aircraft before you buy it. Doing so will give you a feel for the aircraft and ensure it is fully operational. A pre-purchase inspection is also key. Having the plane inspected by a trusted aviation mechanic will further establish the condition of the aircraft. A pre-purchase inspection and document review of the airworthiness certification, service bulletins, logbooks, and equipment lists by a mechanic experienced with your specific type of aircraft can mitigate any concerns about potential issues not evident to the naked eye.

Just like any major investment, your aircraft will need insurance. USAF works with the top underwriters in the aviation industry via our subsidiary, U.S. Aircraft Insurance. Unlike most other types of insurance, aviation insurance is negotiated, allowing our highly knowledgeable professionals to get you the right policy at the right price. We provide our insurance applications online with coverage information so you can complete the forms at your convenience.

Finance Your Aircraft with USAF

USAF has been a leader in aircraft finance since 1998. With customer service at our core, we are ready to help you take the next step into the world of aviation. Buying an aircraft, upgrading one, or applying for insurance doesn’t have to be stressful. Our quick, easy, and convenient loan process typically leads to same-day approvals and next-business-day financial closings. No matter the financial need, we are here to help our clients navigate the complexities of the loan and financing processes. Contact us today and let us help you start or expand your aviation journey.

As an aircraft owner, keeping your aircraft in tip-top shape should always be your first priority. Performing regular maintenance on your aircraft will not only ensure its airworthiness but will also help maintain the value of your investment.

Making upgrades to your aircraft is also an essential way to maintain its value, and keep things running smoothly. Let’s take a look at the many upgrades available for your aircraft and when you should upgrade.

Types of Upgrades and When To Upgrade

Avionics System Upgrade

An avionics system update allows you to customize your cockpit and replace outdated elements with top-of-the-line technology, so you can take your flights to the next level. In addition, this upgrade increases the resale value of an aircraft.

When to Upgrade Your Avionics System

If you don’t have an integrated avionics system, that is a good reason to consider upgrading. With an integrated system, all of your components are engineered by one manufacturer, creating a seamless flight experience. It’s also important to keep up with FAA mandates, as they and other aviation regulators regularly order updates, like the ADS-B upgrade that went into effect in January 2020.

Interior Upgrades

Interior upgrades can include the replacement or refurbishment of all soft goods and hard goods within the cabin, including custom seat design, new restraint systems, lighting, and much more.

When to Upgrade Your Aircraft Interior

Over time, usual wear and tear can start to take a toll on your aircraft’s interior, reducing your and your passengers’ enjoyment. If your interior is starting to show signs of wear, that may be a good time to consider an upgrade, especially if you will be selling your aircraft in the near future.

Engine Repairs and Overhauls

Sometimes only minor repairs are needed on an engine but there will come a time when a complete engine overhaul will be necessary.

When to Upgrade or Overhaul Your Engine

The recommended TBO (time between overhaul) is dependent upon the make and model of the aircraft. In some cases, the FAA will allow you to continue to operate the engine past the TBO, but only with certain requirements.

Structure repairs and modifications

An aircraft has 5 major structural components: fuselage, wings, empennage, landing gear, and powerplant.

When to Upgrade Aircraft Structure

If your aircraft is starting to show signs of stress, such as compression, tension, bending, or torsion, it may be time for a structural repair. This can also include the repair or replacement of landing gear, fuselage, and wings.

Paint touch-ups or new design

Painting an aircraft is part of the required maintenance because it helps to prevent corrosion. Whether you need to touch up some dings and scratches, or you want to change the color or design completely, this is a great upgrade to make, especially if it’s in combination with another upgrade or repair.

When to Upgrade Aircraft Exterior

A typical paint job protects an aircraft for about 6-8 years.

Things To Consider

When deciding whether it’s time to upgrade, there are many factors to consider, including your budget, the age of the engine, and your aircraft’s performance expectations. You should also think about how you intend to use the aircraft over the next several years and whether or not you plan to sell it in the near future.

There may also come a time when your current aircraft no longer serves your needs, and you need to upgrade to a new aircraft. If that’s the case, we can help. Find out how much you can afford with our online aircraft loan qualification calculator.

How to Finance Aircraft Upgrades

Whether you are looking to purchase your first aircraft, improve your current one, or upgrade to a new aircraft, applying for a loan is easy with our online application process. USAF is your one-stop shop for all your aircraft financing and insurance needs.

National Aviation History Month in November is a time to celebrate America’s contribution to aviation and its development. The 30-day event highlights the achievements, advancements, and various accolades of people who have contributed to aviation and aerospace in the country.

Some of the various ways people celebrate the months include reading copies of aviation history and watching documentaries of brilliant minds dedicated to advancing the industry. The celebration aims to show appreciation and understanding of the basics of American aviation developments.

The history of aviation itself is a long one, starting as early as 350 B.C when the Chinese used to fly kites. Today, there are over 200,000 flights per day worldwide, with some airports reporting an average of 100 flights hourly. The humble beginnings of kites and gliders have advanced to the currently witnessed supersonic aircraft like Jeff Bezos’ Blue Origin.

At U.S. Aircraft Finance, we assist people in buying and owning General Aviation Aircraft, new or used. We offer the needed support for anyone looking for refinancing opportunities or looking to upgrade their airplanes with new technology like updated avionics to support ADS-B or mechanics like new engines.

To understand how all these came to be, let’s first find out the history of U.S. Aircraft Finance and its contribution to the aviation industry.

Brief History of U.S. Aircraft Finance

USAF is the brain-child of an Air force Veteran and a former Air National Guard, Dave Savoie. We are an independent aircraft finance company offering aviation financing and aircraft insurance. For over 20 years, USAF has grown to become an industry leader with competitive rates and excellent customer service. To understand the USAF’s beginning, development, and future, let’s look at it from the eyes of the owner, Dave Savoie.

Who is Dave Savoie?

Dave Savoie, the USAF founder, and owner is an Air Force veteran. He served as a KC-135 pilot refueling fighters, bombers, and the infamous SR-71 during the 60’s Vietnam War. He also served and lived with the Green Berets.

Dave accumulated approximately 1,000 hours of combat flight time when he served as a Forward Air Controller in the O-1 Bird Dog. From the war, he joined the Rhode Island Air National Guard, where he became the Command Pilot and Chief of the Command Post. As the aircraft commander, he flew the C-130 Hercules. His retirement came after 22 years in service.

During the lengthy service, Dave received various medals, declarations, and ribbons, such as:

• Distinguished Flying Cross
• Air Force Commendation Award
• Armed Forces Reserve Medal
• National Defense Service Medal
• 2 Vietnam Service Medals
• Republic of Vietnam Campaign Medal
• 14 Air Medals for Meritorious Achievement in Aerial Flight
• Small Arms Expert Marksmanship Ribbon
• 3 A.F. Longevity Service and Award Ribbons
• Republic of Vietnam Gallantry Cross with Device

Dave’s extensive military experience, passion for service, knowledge of financing, and love of flight gave birth to U.S. Aircraft Finance.

Reasons for Creating U.S. Aircraft Finance

Dave’s mission with USAF was to offer unbiased and reliable customer service in a field he understands and loves. While working in the banking industry, Dave found it often difficult to provide the level of service he would like. Something would always interfere with his progress.

Additionally, the nuances of the aviation industry make it challenging for banks and customers to communicate the correct financing information on time. There are various details in the financing process and having too many parties involved, can result in a poor customer experience.

USAF is a one-of-a-kind service where customers can enjoy direct services from knowledgeable aircraft finance guides. Customers can receive a same-day application and approval process with a potential next-day finance agreement closing.

It is safe to say that USAF stands for helping customers navigate the complex financing and loan industry. Our primary aim is to offer accessible, prompt, customized services to make aviation financing a breeze.

Why Choose USAF

USAF is ideal for customers looking for simple, convenient, prompt, and competitive loan rates. The loan rates are some of the lowest in the business. Being a veteran-owned business, we also provide military discounts to make owning an aircraft simple.

At USAF, service is at our core. We are dedicated to getting every customer the financing they need to achieve their dreams. Contact us today or fill out a free quote to get started. You can also follow our blog to learn more about our services and receive updates on aviation trends.

How do you decide whether to buy a new or used aircraft? Many people ready to purchase, especially for the first time, are struggling to answer this question. Some may think that it all depends on whether you can afford a new one or not. But others may think that the less-costly option is the way to go.

While money is the primary determinant, it shouldn’t be the only guideline for a smart prospective buyer. Every individual will decide based on his personal preferences and other significant factors. Let’s look at the pros and cons of buying either a pre-owned or a new aircraft; then, you can decide based on your preference and financial capacity.

Benefits of Buying a New Aircraft

New aircraft come with warranties

Unlike pre-owned, new aircraft come with warranties covering engines, avionics, airframe, interior, and many other components for about five years. You will not have to spend an arm and a leg on repair and maintenance because the costs will be negligible during the warranty period.

Many dealers or manufacturers offer support throughout the ownership of a new aircraft

Some buyers may buy a new aircraft because of the continued relationship with the dealer or manufacturer throughout the ownership period. Many dealers and manufacturers will assist with maintenance, tackle technical issues, and answer any questions concerning the aircraft. You may also get fixed prices for repairs from dealers for a period.

New aircraft are customizable

A buyer can customize a new aircraft to their heart’s desire. They can choose the interior configuration, the paint scheme, leathers, fabrics, and optional cabin and cockpit equipment. A buyer with a unique design preference may benefit from a new aircraft because they are unlikely to find their taste in the pre-owned market.

No worries about undisclosed mechanical issues

Unlike pre-owned, new aircraft rarely have undisclosed mechanical issues. If there are any issues, you’ll be covered because of the warranty. Pre-owned aircraft need to undergo thorough pre-purchase inspection for any mechanical problems.

Benefits of Buying Pre-owned Aircraft

The price is significantly lower

Money is a primary factor in purchasing an aircraft. If you don’t have sufficient funds to buy a new one, you can conduct thorough research and buy a pre-owned aircraft in good condition at a lower price. Fortunately, you can find a used aircraft that delivers a better value comparatively. A plane less than ten years old may arrive at the destination almost simultaneously as a new model making the same trip.

No waiting for your new aircraft to be ready

The demand for aircraft is high, forcing the delivery of new models to take longer. Some business people are not prepared to wait long and would rather go for the preowned market. If you need an aircraft within a short period, it is advisable to go for a pre-owned one.

The depreciation rate is slower

Brand new planes lose a significant value once off the assembly line. Older planes have depreciated over time, and changing their ownership does not cause immediate depreciation. If you are looking for something that you can resale after a short period for almost the same price or even higher, then a pre-owned plane is the best option for you.

Possible relationship with the manufacturer or authorized service center

When you buy a pre-owned plane, you may still be able to maintain a relationship with the authorized service center or manufacturer. Though you might not get the same level of services as a person that has bought a new plane, you can benefit from affordable maintenance services and advice.

Conclusion

An aircraft purchase depends on your purpose, financial stability, and how long you’ll need it. If you’re looking to purchase an aircraft, whether new or used, US Aircraft Finance can help. Our loan process is simple, quick, and convenient. We offer financial assistance for purchasing, refinancing, and upgrades.

Use our online loan calculator to determine how much aircraft you can afford, then give us a call! We are happy to answer any questions you may have. You can also visit our website and read our previous blogs to learn more.

If you have been considering purchasing an aircraft for your business, now is the time. 2022 is the last year for business owners to take advantage of the 100% bonus depreciation, with a few exceptions for newly manufactured aircraft delivered in 2023. As the end of the year quickly approaches, tax-efficient growth is a major consideration for most business owners. Purchasing an aircraft for business is a strategy most companies consider–and with the 100% business write-off, it is a good and practical strategy.

Businesses looking to take advantage of bonus depreciation at the 100% rate must place their used or new aircraft in service before the start of 2023.

Fortunately, if purchasing an aircraft isn’t an option for you in 2022, you can still be entitled to claim bonus depreciation when you are ready to purchase, though at a reduced rate. The 100% rate is expected to reduce by 20% yearly over a 4-year step-down. Here is an expert analysis of the 100% bonus depreciation and how to take advantage of this tax incentive for your business aircraft purchase.

Comprehensive Analysis

In 2017, Congress passed The Tax Cuts and Jobs Act which amended Section 168(k) of the Internal Revenue Code (“I.R.C.”). This section allows taxpayers to claim a depreciation deduction in the year they place the qualified property (in this case, business aircraft) in service.

The bonus depreciation deduction amount is a percentage of the taxpayer’s adjusted basis in the aircraft. Furthermore, the percentage is determined by the year a business places the aircraft in service. This new law allows for a 100% write-off for qualified property purchases.

According to the Tax Cuts and Jobs Act (TCJA), the applicable percentage for aircraft placed in service from 2018 to the end of 2022 is 100%. However, still on the same provision, the percentage will reduce by 20% every year until the end of 2026. This means that bonus depreciation will no longer be an option for businesses intending to put aircraft in service or finance existing aircraft at the start of 2027.

How Does Bonus Depreciation Work

Bonus depreciation is optional. However, if you want to take a considerable bonus depreciation amount, it is advisable to start as early as possible before the end of 2022. Here is a breakdown of the bonus depreciation percentage after the tax reforms.

• 100%, effective from September 27, 2017, until December 31, 2022
• 80% effective from January 1, 2023, until December 31, 2023
• 60% effective from January 1, 2024, until December 31, 2024
• 40% effective from January 1, 2025, until December 31, 2025
• 20% effective from January 1, 2026, until December 31, 2026.

Eligibility for Bonus Depreciation

All property must match the qualifications of qualified property under I.R.C. § 168(k) to qualify for bonus depreciation. These eligibility requirements include:

• The property must have a useful life of 20 years or less
• The property must be placed in service before January 1, 2027
• The property must meet an original use or acquisition date requirement.

Summary

Bonus depreciation effectively creates accelerated deductions and tax savings, which means you can increase your asset base with an aviation lease or suitable loan sooner. Unfortunately, this provision is time-barred and most aircraft won’t qualify for the 100% bonus depreciation in 2023. That’s just more incentive to take advantage of the 100% bonus depreciation while it lasts.

Are you ready to take advantage of bonus depreciation to finance your business aircraft purchase? If so, USAF is here to help. Avoid missing out on the 100% rate and let our aircraft finance experts help you finance your business aircraft purchase this year.

We offer competitive rates as well as an easy and convenient loan process. We can also help you finance your upgrades and help you refinance your aircraft.

Start the process today by using our free loan calculator to see how much aircraft you can afford for your business.

When it comes to your business, you work hard to ensure that everything runs smoothly. That’s why purchasing a business aircraft could be a huge benefit to your business. Whether you’re running a large corporation or a small startup, purchasing an airplane can help your business thrive. In this blog post, we’ll explore five reasons why buying an aircraft is a smart move for any entrepreneur.

Save Time and Money

As a business owner, you know how quickly time can be lost and money spent. This is why purchasing an aircraft is a smart decision for your company. Not only will you save time by not having to fly commercially, but you’ll also save money because of the depreciation tax deductions available on an aircraft purchase. These deductions will help offset the cost of the purchase of your own plane, and investing in this type of business asset can help boost your profits in the long term.

If you’re looking for ways to improve efficiency at work or just want some time away from the office, buying your own aircraft may be exactly what you need! Access to a private jet or prop plane allows employees and executives who frequently travel more freedom with their schedules.

Access to Smaller Airports

Sometimes a destination may only have a small local airport, which means traveling there commercially will take extra time and effort, because you’ll have to fly into a larger airport further away. These smaller airports are only able to accommodate the smaller aircraft. With your own private aircraft, you’ll be able to access these smaller airports with ease, saving you time and frustration.

There is also a benefit of flying out of a smaller airport, as you won’t have to worry about finding and paying for parking, which can add up to be quite expensive. Imagine, parking your vehicle and walking straight up to your own aircraft, boarding with no security lines to wait in, no baggage to check-in and no waiting around until boarding time.

Turn Business Into Leisure

Another benefit of aircraft ownership is that you can visit places you would never think of visiting and make stops wherever you want—on the way to your destination or even on the way back. Additionally, since you can stay as long as you want at each destination, it gives you time for exploration and sightseeing. There is no need to rush from one place to another because you are on your own schedule, not someone else’s. The best part is, as long as you’re using your aircraft for business purposes 50% of the time you’re able to deduct 100% of the plane’s purchase price, maintenance expenses and first-year bonus depreciation.

No Need to Rent

If your business is thinking about purchasing an aircraft, there are several benefits to consider. Many pilots and operators rent their equipment, but purchasing your own plane will be much more cost-efficient in the long run. Purchasing a business aircraft eliminates the need for rentals and can save thousands of dollars per year.

Stay On Schedule

With your own aircraft, you can reach your destination in less time and with more ease. The time you can save by not worrying about traffic or parking is invaluable, allowing you to stay on schedule and ultimately creating a reliable, successful business.

The Bottom Line

• Purchasing an aircraft not only adds value to your business, but also saves time, money and frustration
• Owning an aircraft isn’t just fun, it’s practical

If you are interested in financing an aircraft, we have a team of experts who specialize in that area and can help you find the right loan for your business. Contact us today.