Category Archives: USAF

100% Bonus Depreciation For Your Business Aircraft Ends In 2022

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.

Here’s Why You Should Purchase an Aircraft 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.

Don’t wait….. get pre approved now!

When armed with pre-approval from our financing team, you can head to the hangars knowing what you can afford and move quickly when you find the right aircraft. One of the greatest challenges pilots face today is finding the right aircraft and closing on it before it’s swept away by another buyer. US Aircraft Finance is here to help you move quickly and effortlessly through the whole process.
Our loan application-to-closing process can occur in as little as one business day, making it easier than ever to snag your dream aircraft!
Get pre-approved today—apply now.

How To Apply for an Aircraft Loan

The excitement of buying an aircraft can wane if you don’t have enough funds. Getting the funds can be daunting, especially if it’s your first aircraft purchase, but it doesn’t have to be.

Your worry comes to an end at US Aircraft Finance (USAF). We make the job easier by enabling you to get in the pilot’s seat as fast as possible, especially if you’re looking for a business aircraft to help you save time and money.

Types of Loans We Offer at USAF

At USAF, we can provide financial assistance to:

Our speedy loan process allows for pre-approval in one business day and closing as soon as you are ready so you can quickly get into your new plane.

If you’re looking for the most competitive aircraft loan rates for new and used purchases,USAF has you covered. We enable you to start saving for your monthly payments or use equity to get cash out with the following loan types:

Purchase Fixed Rates

The purchased fixed rates loan is available in 10, 15, 20 and 25 years based on the aircraft’s year and other qualifying factors. You may also choose a 3/1 Year Adjustable Rate Loan, which offers the lowest initial interest rates and minimal monthly payments for the first 3 years.

We will help you determine what works best for your budget as it provides stability and peace of mind because it:

  • Attracts fixed principal and interest payment for the loan’s lifespan
  • Is structured to cushion you from rising interest rates
Refinance Rates

Would you like to refinance your existing aircraft? You can start setting aside your monthly repayment. Alternatively, you can use your equity to access cash out with a fixed rate for aircraft refinancing loans.

The loan product:

  • Is available at 15 and 20-year fixed interest rate aircraft loans
  • Has a shorter loan term option
Upgrade Rates

Under this loan option, you can choose between:

  • Aircraft loan rates: You can access cash out using your equity to upgrade and improve your aircraft
  • Fixed-rate for upgrade and enhancement loans: You can access 15 and 20-year fixed interest rate facilities to upgrade or improve your aircraft. A shorter-term loan is available if you prefer

Loan Process Overview

Fill Out the Application Form

The first step to applying for an aircraft loan is to call one of our finance officers at 802-434-4100 and discuss the aircraft and your general finance questions. We will guide you through the process and answer any questions before you complete and compile the needed documentation.

Documentation

Once we have answered your questions, you will need to submit a complete USAF application, don’t forget to sign page 2 & 3. Then furnish us with:

Two years of personal and corporate (if it applies) federal tax returns

The last two years’ W2

A copy of the most recent bank statements

Most recent pay stubs for one month

Review

A representative from USAF will get back to you concerning your application. They’ll confirm the information you provide and discuss your loan application. We will notify you within one business day of our decision.

Approval and Closing
  • Complete aircraft pre-buy, aircraft inspection forms and necessary documents
  • Open escrow
  • Complete all pre-closing documents
  • Set a closing date
  • Sign loan documents

Once you have met all required items to close and we have cleared you to complete the process, USAF will disburse your loan proceeds on your closing date so you can fly off in your new plane.

Apply for an Aircraft Loan Today

If you’ve been dreaming about flying on your own schedule and you want to make it a reality, an aircraft loan from USAF is the only thing standing between you and your dream. Why wait any longer when we can provide you with the finances you need to be equipped with your own aircraft? You can fill out our form for a free quote or contact us via phone or email to speak to a knowledgeable aircraft finance representative.

Take your travels into your own hands

Ever wondered what it would be like to own an aircraft for your business? Dreaming about flying on your own schedule, wherever you want to go? Business and leisure travel is made easy when equipped with your own aircraft—avoid long airport lines, airline fees, and crowded commercial flights!
Whether you are seeking the magnificent feeling of flight or need to get down to business and travel from point A to point B, an aircraft can get you there. We can help you finance the aircraft you need with our top-of-the-line aircraft financing options.
Check out our online calculator to see how much aircraft you can afford.

Protect Yourself During Hurricane Season with Aircraft Insurance

According to forecasters at NOAA’s Climate Prediction Center, the 2022 hurricane season is forecasted to be above average. NOAA has forecasted around 14 to 21 storms, with at least six hurricanes and three to six storms categorized as major hurricanes. This means you will likely experience intense storms with winds moving at speeds over 100 miles per hour more than once this season!

Regardless of the degree of the storm, it is always best to have a hurricane plan for your aircraft—and insurance is essential.

Most aircraft insurance policies cover the reimbursement costs associated with the aircraft moving in an area after a hurricane warning. Still, not all insurers issue the same coverage when a hurricane watch is issued in less than 24-48 hours prior. It is prudent to stay updated on what your policy offers.

Why You Should Insure Your Aircraft

The likelihood of an aircraft getting damaged by storms like hurricanes is small, but that risk still factors into insurance costs. For example, the cost of any physical damage to the plane due to the storm can be high if the aircraft was left outdoors during severe weather.

Another essential consideration is the assessment of storm damage. In this case, the insurer and adjuster will want to determine how the damage occurred and any details that help determine the amount of compensation required. It includes inspecting and evaluating damage to develop a repair plan.

During this process, the evaluation will determine the equipment that requires repair or replacement. With this information, you can then file a claim to cover the cost of the damage using your aircraft insurance. It is not easy with the dynamic nature of slow-moving storms like hurricanes. For such reasons, it is wise to partner with a reliable insurance provider.

Aircraft Insurance from US Aircraft Finance

US Aircraft Finance works with some of the most comprehensive, A+ aircraft insurance carriers that you need to protect your aircraft at all times, especially during hurricane season.

Through our subsidiary, US Aircraft Insurance, we combine our knowledgeable team of aviation insurance professionals with the industry’s most respected aviation insurance underwriting companies.

Get Your Free Insurance Quote Today

Getting reliable aircraft insurance can be challenging during hurricane season. That’s why we make the application process painless and straightforward.

Apply for a free insurance quote now or contact us to speak to one of our aircraft experts today.

Hurricane Season is here

Hurricane season is here…are you and your aircraft protected? When heading into the summer and fall, hurricanes are a greater threat to pilots and their aircraft. USAF works with top carriers to protect both you and your aircraft.

We have access to all the major A+ rated aviation insurance underwriters, so no matter what type of flying you do, we can help you secure the best coverage.

Give us a call at 802 434-4100 to learn more about insurance coverage through USAF.

Get closer to the sky with US Aircraft Finance

Our convenient and speedy process enables us to offer some of the lowest rates in the industry for all types of aircraft loans. Whether you are financing an aircraft purchase, refinancing your current loan, or upgrading your airplane, we understand the ins and outs of aircraft financing and how to best satisfy your needs.

We are insurance brokers as well. Are you covered for flying season? We offer aircraft and hangar insurance! Get your free, no obligation aircraft insurance quote today. Simply fill out the form and one of our aviation brokers will get in touch with your quote as soon as possible.

Whether you are purchasing your first aircraft, upgrading to a new one, refinancing an existing loan, or applying for insurance, we make it as easy so you can get in the air sooner. Apply now to lock down your rate and get closer to the skies today!

Upgrade business travel

Upgrade business travel with a company aircraft to avoid airport lines, crowded planes, and exorbitant fees. As an added bonus, you can also write off your business aircraft as a tax deduction. You can deduct 100% of a plane’s purchase price and maintenance expenses if the plane is used for business purposes.

The best part- aircraft business use can be as little as 50% to be entitled to bonus depreciation. This means you can use your aircraft for recreational purposes half the time and still save money.

Give us a call to talk to one of our aircraft financing experts, or visit our website to learn more!

✈️ www.usaircraftfinance.com
📞 (802) 434-4100

Reach new heights with your own aircraft

The start of spring means the start of the travel season. If you are looking to avoid airport lines and hassle this year, consider purchasing your own aircraft!

Owning a personal plane means more than just avoiding airport crowds and fees- it also gives you flexibility and true travel freedom. Travel wherever you want on your own schedule, even travel where commercial airlines can’t go! Reach new heights with your own aircraft.

US Aircraft Finance can help you finance your aircraft, get insurance coverage, or upgrade your current plane. Call us to chat with our aircraft financing experts or visit our website to learn more.

🛩️ www.usaircraftfinance.com
📞 (802) 434-4100