What Is 100% Bonus Depreciation for Private Jets?
If you’ve been considering purchasing a private jet, now may be the ideal time. Thanks to updates in U.S. tax legislation from the One Big Beautiful Bill Act (OBBBA), qualifying buyers can take 100% bonus depreciation on new and used aircraft placed in service before the end of the year.
This powerful incentive allows private jet owners to deduct the entire cost of the aircraft from their taxable income in the first year of ownership, significantly lowering the net cost of acquisition.
How Bonus Depreciation Works
Under Section 168(k) of the Internal Revenue Code, bonus depreciation allows for accelerated depreciation of qualifying assets. For aircraft, this means:
- 100% write-off in the first year of service
- Applies to new and pre-owned aircraft
- Must be used predominantly for business purposes (more than 50%)
- Aircraft must be placed in service in the qualifying tax year
Key Benefits for Aircraft Buyers
- Immediate Tax Relief
The biggest advantage is the ability to reduce your tax liability in the year of purchase. For example, if you buy a $10 million aircraft used for qualified business purposes, you can deduct the full amount, potentially saving millions in federal taxes. - Enhanced Cash Flow
By lowering your tax bill, bonus depreciation can improve overall cash flow, freeing up capital for operations, investments, or upgrades. - Fleet Modernization
This tax incentive makes it easier to upgrade from older aircraft to newer models with enhanced performance and safety features. - Applicable to Used Aircraft
Unlike previous versions of the tax code, this bonus depreciation applies to both new and used aircraft, offering more flexibility in the pre-owned market.
Why Work with an Aircraft Management Company?
Purchasing a private jet is only the beginning of the ownership journey. To fully realize the benefits of 100% bonus depreciation and ensure compliance with regulations, working with a professional aircraft management company is essential.
Here’s how a full-service management firm like Sun Air Jets can support you:
Business Use Compliance & Documentation
To qualify for 100% bonus depreciation, the aircraft must meet the IRS’s “qualified business use” requirements, meaning it must be used more than 50% of the time for legitimate business purposes. An aircraft management company helps:
- Track flight hours and usage by purpose (business vs. personal)
- Maintain detailed logs and reporting
- Implement best practices to separate personal use from business useCoordinate with your tax and legal advisors to ensure compliant structuring
Operational Oversight & Regulatory Compliance
From FAA regulations to complex tax codes, private jet ownership carries a significant compliance burden. A management firm ensures your aircraft operates safely and legally under the correct certification, whether it’s Part 91 (private use) or Part 135 (charter). Services typically include:
- Hiring and training flight crews
- Maintenance tracking and scheduling
- Regulatory reporting (FAA, IRS, and DOT)
- Safety management systems (SMS)
This not only protects your investment but also ensures you stay eligible for depreciation and other financial benefits.
Charter Revenue Through Part 135 Management
When your aircraft is not in use, placing it on a Part 135 charter certificate can generate charter revenue that offsets operating costs. A management and charter operator like Sun Air Jets can:
- Market your aircraft to vetted charter clients
- Handle all booking, scheduling, and dispatch logistics
- Manage accounting, payments, and crew coordination
- Ensure your aircraft is operated to commercial standards
This flexibility enhances your return on investment while keeping you compliant with both tax and regulatory rules.
Cost Optimization & Vendor Management
Aircraft management firms leverage economies of scale and industry relationships to reduce your costs and improve service quality. This includes:
- Fuel purchasing programs
- Hangar storage
- Maintenance oversight
- Insurance and risk management
By outsourcing to experienced professionals, you avoid the hidden pitfalls and high learning curve of direct ownership.
Strategic Planning & Acquisition Support
If you’re just starting the ownership journey, a private jet management company like Sun Air Jets can provide acquisition consulting, ensuring you select the right aircraft to meet your mission, budget, and tax planning needs. They’ll guide you through:
- Pre-buy inspections
- Legal structuring for ownership and tax efficiency
- Financing and leasing options
- Import/export considerations for international buyers
In short, a qualified aircraft management company is your partner in maximizing ownership value, while minimizing risk, stress, and compliance headaches.
At Sun Air Jets, we offer turnkey management solutions tailored to each owner’s needs. Whether you’re a first-time buyer or managing a multi-jet fleet, we help you unlock the full benefits of private aviation, especially under today’s favorable tax environment.
Final Thoughts on 100% Bonus Depreciation
Investing in a private jet is a significant decision, but with 100% bonus depreciation, the financial benefits are stronger than ever. If you’re considering purchasing an aircraft or adding to your fleet, now is the time to explore your options.
At Sun Air Jets, we specialize in aircraft management, acquisition, and charter services that help owners maximize the value of their investment, both in the air and on their bottom line.
Ready to take advantage of bonus depreciation?
Contact us today to speak with an aviation advisor or schedule a consultation to see how we can help manage your aircraft and guide you through the acquisition process from start to finish.
Learn more about our Aircraft Management services, contact us via email or call (805) 389-9301.
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