Autumn is in full-gear which means we’ll soon have to say goodbye to beautiful flying conditions. Have you considered purchasing a new aircraft before the season is over?
If you’re looking for a sign that now is the time, remember that the 2019 tax year is coming to a close, which means you can use your remaining write-off allowances to purchase the new aircraft you’ve been dreaming of.
Using Your Write-Off Allowances
A write-off is an accounting tool that can be used to account for unpaid loan obligations. Essentially, write-offs can be used to legally lower your annual tax bill.
To write off an aircraft, you must use the vehicle for business purposes. The amount you can write-off is based on the price and percentage of usage for business operations. The write-off allows you to claim depreciation of the value of your aircraft due to wear and tear over time.
There are two methods for deduction- Section 179 and MACRS.
The maximum expense deduction was recently raised from $500,000 to $1 million.
Use this method to deduct part or all of the expenses in the year of purchase.
2019 is the last year for bonus depreciation amounting to a 30% write off in addition to Section 179.
The modified accelerated cost reduction system method extends the time you can deduct the depreciation to a maximum of eight years.
Write-off allowances can be extremely helpful to business owners, but the correct paperwork is essential. The method you choose will be based on personal needs and finances. Consult a tax professional before deciding.
Finance your next aircraft with the help of USAF; we offer fixed and adjustable-rate loans and tailor financing based on your unique needs.
Use our Airplane Loan Qualification Calculator to find out exactly what you can afford and bring you one step closer to your new aircraft.
For more information on the financing process, follow our 3 Steps to Purchasing Your New Aircraft.
Working with USAF will simplify the financing process from filling out the eligibility application form to choosing a payment plan that works best for you.
Beyond just purchase financing, we can also help you protect and upgrade your aircraft. We offer immediate access to all top-rated aviation insurance underwriters to protect you no matter what, where, or how you fly.
We also finance aircraft upgrades. Ensure your aircraft is up to date with the newest FAA requirements by upgrading now.
Contact us today to learn more
USAF has been providing competitive financing and quality service for over 20 years. For more information or to speak with a representative, you can contact us here.
You can also learn more about our services and how we keep pilots in the sky on our blog here.