Blackbird Aero Blog

As of December of 2017, the Tax Cut and Job Act was officially signed. This is the first tax reform in over 30 years, and has drastically impacted the aviation industry.

A significant impact of this new tax bill allows owners of new and used aircraft to depreciate 100% of the aircraft’s value in one year, allowing for loss carry forward. Introduced in 2001, bonus tax depreciation has always been an incentive to buy a new business aircraft. Again, this incentive only existed for new aircraft to stimulate demand for newly manufactured aircraft.

With our new tax bill, 100% bonus depreciation is effective for new and pre-owned aircraft. The market’s reaction to this has been two fold, transactions have soared and conversely inventory is quickly drying up. This has produced an opportunity to sell your pre-owned aircraft to a expanding range of consumers.