The 2010 Small Business Jobs ACT
Economic Stimulus Package
Benefits Aircraft Buyers
Important Links:
Section 179 Cap Increase
Section 179 allows for the one-time expensing of business equipment purchased in a
given year. Under the 2010 Small Business Jobs Act, Section 179 expensing has been
increased to $500,000 Section 179 applies to both new and used aircraft. The overall
cap has been increased to $2,000,000. You must take delivery in 2011 to qualify for
the increased deduction.
Bonus Depreciation
The Economic Stimulus Package includes a 'bonus depreciation' provision. This
provision would allow a small business to write-off 50% of a new aircraft purchase in
addition to the normal 5-year depreciation schedule. Bonus depreciation applies to
factory-new aircraft only.
***There are several requirements that may need to be met in order to qualify for
Section 179 expensing. Other tax implications may apply. Please consult with your tax
advisor before making any aircraft buying or selling decision.
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