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 the first half of 2020, driven by advantageous tax policies.
- Accelerated depreciation schedules, allowing 100 percent depreciation in the first year of ownership for both new and used aircraft, are a significant catalyst for this market strength.
- The CARES Act further allows businesses to carry back losses generated from full depreciation for up to five years, enabling tax refunds.
- Despite these benefits, aircraft owners must maintain a minimum of 50 percent business use to avoid the recapture of accelerated or bonus depreciation.
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