Aircraft depreciation is the most significant tax benefit of private jet ownership. Under current US tax law, business aircraft can be depreciated on accelerated schedules — and Section 179 bonus depreciation may allow first-year deduction of the entire purchase price.
MACRS Depreciation
Aircraft depreciate over 5 or 7 years under the Modified Accelerated Cost Recovery System (MACRS). The schedule front-loads deductions: approximately 20% in year one, 32% in year two under 5-year MACRS.
Section 179 Bonus Depreciation
Under current law, 100% bonus depreciation allows the entire cost of a qualifying aircraft to be deducted in the year of acquisition. This applies to both new and pre-owned aircraft placed in service for business use. Consult your tax advisor — bonus depreciation percentages may phase down in future years.
Qualifying for Deductions
The aircraft must be used primarily for business purposes. Personal use reduces the deductible percentage. Detailed flight logs documenting business purpose are essential for audit defense.
Frequently Asked Questions
If used primarily for business, yes. Section 179 and MACRS depreciation allow significant deductions. The exact amount depends on business use percentage.
A tax provision allowing immediate deduction of the full purchase price of qualifying business assets, including aircraft.
No. Both new and pre-owned aircraft qualify for depreciation deductions under current law.
The IRS requires 'primarily business use.' Maintain detailed flight logs documenting the business purpose of each flight.
Potentially the entire purchase price in year one under 100% bonus depreciation. Consult your tax advisor for current rates.
State tax treatment varies. Some states conform to federal depreciation; others have different rules. Consider aircraft registration state carefully.
Yes. Fractional ownership interests qualify for depreciation deductions.
Flight logs, business purpose documentation, passenger manifests, and expense records. An aircraft use policy helps demonstrate business intent.
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