Aircraft Sales and Consulting
Matt Tutton has over 30 years experience in the Aviation Field. He has owned and operated Aircraft, Fixed Base Operations, Flight Schools, and various associated businesses. He has an extensive knowledge of Financial Planning, marketing, day to day operations, tax advantages and aircraft rental and leasing. Matt is available for fee based consultation regarding aircraft purchases, from small single engine to Executive Jets, operating a flight school succesfully, tax advantages of aircraft ownership, management and leasing of aircraft and FBO management.
Aircraft Sales
We are available to assist you in the purchase of your aircraft, whether for personal use or business, single engine to Executive Jet. We will guide you to make the right decision for the plane that best fits your mission. We can also assist in the proper structure for ownership and tax advantages. Assist in obtaining proper documentation and pre-purchase inspections on any aircraft.
Tax Advantages of Aircraft Ownership
2011 Tax Update
100% First Year Depreciation applies for NEW aircraft purchases in 2011
Jan 1, 2011 - Section 179 limits were increased by the 'Jobs Act of 2010' - allowing businesses to write-off up to $500,000 of qualified capital expenditures subject to a dollar-for-dollar phase-out once these expenditures exceed $2 million.
Bonus Depreciation was also increased to 100% by the 'Tax Relief Act of 2010' - allowing businesses that exceed the $2 million cap to write-off 100% of qualified assets using first year Bonus Depreciation. Also, small businesses that are not profitable in 2011 can use 100% Bonus Depreciation (on new equipment only) and carry-forward the loss to future profitable years.
This should mean a substantial boost to your bottom line this year. But to get the deduction for tax year 2011, you have to act this year, as once the clock strikes midnight on 12/31/2011, Section 179 can't increase your 2011 profits anymore.
The normal method for aircraft depreciation is MACRS Depreciation Method
The following table is the depreciation schedule for an aircraft that is operated under Part 91 of the Federal Aviation Regulations, for a calendar year taxpayer:
Half Year Convention (closing before September 30) Depreciation over a 6 year period.
Year 1=20%; 2=32%; 3=19.2%; 4=11.52%; 5=11.52%; 6=5.76%
Mid Quarter Convention (closing after September 30)
Year 1=5%; 2=38%; 3=22.8%; 4=13.7%; 5=10.9%; 6=9.6%
Federal tax depreciation is governed by the Modified Accelerated Cost Recovery System (MACRS). Two conventions impact the actual depreciation schedule of an aircraft:
Half year convention – all equipment purchased throughout a tax year is considered to be placed in service on July 1, and will receive one half year of depreciation deduction in the year of acquisition.
• Mid quarter convention – if a taxpayer purchases over forty percent (40%) of his equipment in the fourth quarter of the tax year, depreciation deduction is limited in the first tax year.
Flying Pisces, Inc. assists aircraft purchasers in acquiring aircraft in a tax efficient manner. Services include the elimination or reduction of sales and use tax at the time of purchase, maximizing income tax savings, controlling the cost of personal use of an aircraft, and complying with Federal Aviation Regulations. Cooperation with client’s current tax and legal advisors is welcome and encouraged.
Disclosure Under IRS Circular 230: To ensure compliance with requirements recently imposed by the IRS, we inform you that any tax advice contained in this communication, including any attachments, was not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax related penalties or promoting, marketing or recommending to another party any tax related matters addressed herein.