Source: Spear's Magazine
Private aircraft acquisitions are soaring, with activity in Europe rising by 4 percent last year. But whilst the market may be cruising along at present, there could be turbulence ahead in the form of new tax regulations surrounding these purchases—the Tax Cuts and Jobs Act of 2017. At first blush, many of the changes seem to benefit private aircraft owners, but a closer inspection reveals that there are many potential pitfalls for the unwary purchaser.
The new regulations have significantly altered the acquisition process: eliminating tax-free exchanges, modifying depreciation regulations and limiting the deductibility of business entertainment and commuting expenses. It’s crucial that prospective aircraft purchasers understand the complex ramifications of the new regime.