Congress voted Tuesday night to extend bonus depreciation through 2019, and the proposed law is expected to be signed by President Obama after the House and Senate give final approval to a wide range of tax measures.
When passed, the new law will extend bonus depreciation through 2019. The bonus percentages are 50% for 2015 through 2017, 40% for 2018, and 30% for 2019, at which time the provision will expire. In the years 2018, 2019, and 2020, taxpayers will be able to use the previous year’s percentage if they meet the transition rules. The transition rules are the same as in prior years, including the requirement to have a binding written contract to purchase the aircraft in place by the end of the prior year.
Commenting on the congressional action, Aerlex President Stephen Hofer said he was pleased that new aircraft buyers now have assurance that bonus depreciation will be available for at least four more years and the aviation industry will no longer have to wait, wonder and worry each year whether bonus depreciation will be renewed on an annual basis. He expressed some disappointment in the decreased bonus percentages available in the future, but said she is relieved that taxpayers will be able to take 50% for 2015 and the next two years.
Mr. Hofer added, “If you are planning on purchasing an aircraft, Aerlex is ready to help you take advantage of this tax-saving opportunity as well as a wide range of other tax-related services.”
Please contact Steve at 310-392-5200 or firstname.lastname@example.org.