| In the hours and days immediately following the tragic | | | | opportunities are greatly expanded. |
| attacks on America of 9/11, there was much | | | | So how might a business person benefit from these |
| speculation about the effects on the general aviation | | | | new changes? First of all, the impact of these |
| industry. While the events of September 11, 2001 have | | | | depreciation changes greatly reduce net cash |
| had a significant impact on the economy as a whole, | | | | investment for the purchase of a new airplane. |
| sales of personal aircraft in Michigan have experienced | | | | Specifically, an operator in the 40% tax bracket who |
| a surprising boost. Certainly, the convenience of | | | | can successfully write off his aircraft ownership |
| personal transportation has played a major role in this | | | | expense may have no cash investment in the airplane |
| increase as airport lines and security have become | | | | during the first four years. Additionally, when properly |
| more time consuming. The reduction of flights resulting | | | | structured, many taxpayers have an opportunity to |
| from the airline cost-cutting have limited flexibility for | | | | convert personal use into business use. The Internal |
| the business person and affected the productivity of | | | | revenue code provides an optional method of taxing |
| companies relying on commercial transportation. These | | | | an individual for personal use of an aircraft which |
| factors alone can't explain surge of people joining the | | | | many times amounts to less than 10% of the actual |
| flying community for more than just pleasure. Rebates, | | | | deductions flowing from the investment. Consult your |
| low and 0% interest rates, training allowances, and yes, | | | | tax professional prior to purchasing your new airplane |
| even the IRS played a role in creating an environment | | | | or ask your Aircraft Dealer for the name of an |
| that has introduced more people to the benefits of | | | | Aviation Tax Specialist to set up your purchasing |
| aircraft ownership and had an effect similar to that | | | | entity. |
| seen after the passage of the General Aviation | | | | And you say you're not a pilot? Local aircraft dealers |
| Revitalization Act of 1995. | | | | like Suburban Aviation, Inc. in Lambertville, Michigan will |
| The IRS is here to help you? Well, believe it or not, a | | | | actually teach you to fly your new airplane and even |
| new tax law passed earlier this year represents a | | | | reimburse your expenses when you purchase a new |
| renewed attempt by our nation's leaders to jumpstart | | | | Cessna airplane from them. Most of today's pilots |
| the economic recovery. The bill applies to new | | | | learned to fly in a Cessna airplane and the majority of |
| airplanes acquired after September 10, 2001, and | | | | these pilots continue to experience the freedom and |
| before September 11, 2004, and provides tax savings | | | | flexibility that flight offers in one of Cessna's many |
| from economic stimulus provisions included in the | | | | single engine models. For 75 years, Cessna has been |
| Internal Revenue Code designed to encourage | | | | the leader in general aviation aircraft providing a safe |
| investment in capital assets. Visit your local airport and | | | | and reliable alternative to commercial airlines and the |
| you're sure to see plenty of forty and fifty year old | | | | automobile. |
| aircraft operating for both business and pleasure. Even | | | | So if your business can benefit from improved |
| prior to the new tax law, Congress recognized that | | | | efficiency and tax savings, why not consider a |
| capital investment is an important part of our economy, | | | | company airplane? There are few tax saving |
| and therefore allowed a five year depreciation of | | | | opportunities as effective as fully depreciating an |
| these assets. To further encourage investments, they | | | | aircraft on a five year accelerated basis, and with |
| do not require the depreciation to be spread evenly | | | | today's interest rate environment, a well-structured |
| over the five years, but through a concept know as | | | | transaction often results in little or no after tax cash |
| "double declining balance," greatly accelerate | | | | flow holding costs during the early years of ownership. |
| depreciation during the first two years of ownership. | | | | Of course, arriving at your meeting on time and with all |
| Now with the additional incentives of 30% bonus | | | | your luggage can also be pretty convincing! |
| depreciation on new airplanes, tax deferral | | | | |