Private aircraft ownership offers unmatched flexibility, privacy, and time-saving advantages for business owners, family offices, and high-net-worth individuals. With the One Big Beautiful Bill Act (OBBBA) reinstating 100% bonus depreciation, the potential tax savings can be significant. However, taking advantage of the tax deductions available to aircraft owners demands meticulous attention to IRS rules, appropriate ownership structures, and documentation. This article explores the nuances of tax optimization for private aircraft and outlines practical steps to ensure compliance and maximize deductions.

How Andersen Can Help

Andersen can assist with the following:

• Reviewing ownership structure to ensure the optimization of tax benefits,
• Modeling the impact of various ownership structures given planned aircraft usage,
• Implementing a system for tracking personal and business use based on per-passenger flight logs and calculating relevant income imputation and expense disallowance amounts,
• Ensuring requirements are met for claiming the bonus depreciation deduction and evaluating alternative depreciation methods,
• Documenting deductible ordinary and necessary expenses, and
• Providing assistance in the event of an IRS examination.

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