You may not believe it—unless you’ve been shopping for a used Cessna 182 or its like over the last few months—but the general aviation used aircraft market has stayed relatively strong throughout the first half of 2020, according to industry representatives from insurance brokers to aircraft brokers. Now may be a really good time for you to consider buying an airplane—avoiding airline travel just being one benefit.
Aircraft Market Benefits from Bonus Depreciation
Key Takeaways:
- The general aviation used aircraft market remained strong in early 2020, even for used planes like the Cessna 182.
- This market strength is primarily driven by accelerated depreciation schedules, allowing businesses to claim 100% of an aircraft's depreciation in the first year of ownership for both new and used aircraft.
- The CARES Act further supports larger businesses by enabling them to carry back losses from full depreciation to previous tax years (as far as 2015) for a tax refund.
- Owners must strictly maintain a minimum of 50% business use for their aircraft to prevent the recapture of accelerated or bonus depreciation benefits.
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