Economic Stimulus Incentives in 2010 Tax Relief Act Retroactive to September 9, 2010
New aircraft purchases and new equipment purchases for used aircraft can now be expensed in the year of purchase through December 31, 2011. For 2012, 100% bonus depreciation returns to 50% bonus until it expires on January 1, 2013. In addition, new aircraft purchases (but not new equipment on used aircraft) will receive a one year extension on the placed in service requirement under certain circumstances. The additional first year depreciation deduction is allowable both for regular income tax purposes and alternative minimum tax purposes. Qualifying property must be new, used primarily for business purposes, and meet other tests necessary to qualify for modified accelerated cost recovery system depreciation (MACRS). The new bonus depreciation excludes property acquired under written binding contract in effect prior to January 1, 2008.
KCAC is available to help navigate you through the purchase of your new aircraft or answer questions regarding how Bonus Depreciation will affect your aircraft purchase.
Call us at 866.359.5222 or email us at sales@kcac.com to discuss your needs with our sales staff. We look forward to answering any questions you may have.