Aircraft tax & depreciation
Depreciation and tax treatment can move the after-tax cost of a business aircraft substantially — and they're where deals most often go wrong. Here's a clear overview of the concepts every buyer should understand before structuring a purchase.
Educational overview only — not tax or legal advice. Aircraft tax is technical, fact-specific, changes with legislation and varies by jurisdiction. Engage a qualified aviation tax advisor before relying on any position.
Why depreciation matters
For an aircraft used in a trade or business, depreciation lets the owner recover the cost over time as a deduction against income — which can materially change the after-tax cost of ownership. It's also an economic reality reflected in the aircraft's declining market value. The two are related but distinct: tax depreciation follows statutory schedules, while market value follows the used-aircraft market.
Bonus depreciation
US bonus depreciation lets a qualifying business deduct a large share of an aircraft's cost in the first year rather than spreading it over the recovery period. The percentage has changed repeatedly — it had been phasing down after 2022, and 2025 federal legislation restored 100% bonus depreciation for qualifying property. Eligibility, effective dates and whether a specific aircraft and use qualify are technical and change with legislation — confirm the current rules and your position with a qualified aviation tax advisor before relying on them.
MACRS recovery periods
Absent (or after) bonus depreciation, business aircraft are generally depreciated under MACRS. As a rule of thumb, aircraft used in non-commercial business operations often use a five-year recovery period, while aircraft used in commercial (for-hire) operations often use a seven-year period — but the correct classification depends on how the aircraft is actually used and is a determination for your tax advisor.
The qualified-business-use test
The generous first-year deductions hinge on the aircraft being used predominantly for business — commonly framed as a 'more than 50% qualified business use' test. Fall below the threshold, or mix in significant personal or entertainment use, and deductions can be reduced, deferred or recaptured. Careful use logs and a defensible ownership/operating structure matter as much as the purchase itself.
Personal & entertainment use
Personal use — particularly entertainment flights for owners and executives — is subject to specific disallowance rules that can claw back deductions. This is one of the most common areas where aircraft tax positions go wrong, and it's exactly where experienced aviation tax counsel earns its fee.
Beyond federal income tax
Income-tax depreciation is only part of the picture. Sales and use tax on the purchase (and available exemptions), state apportionment, Section 179 expensing limits, passive-activity and at-risk rules, and — for cross-border deals — import duty and VAT/GST all bear on the true after-tax cost. Structure the transaction with these in mind from the start, not after closing.
Model the numbers
Depreciation feeds the capital side of ownership; run it alongside the operating economics.
Aircraft tax & depreciation FAQs
Can you write off a private jet?
A business can depreciate an aircraft used predominantly (generally more than 50%) for legitimate business purposes, and — when the rules allow — accelerate much of that deduction into the first year via bonus depreciation. It is not a blanket 'write-off': the deduction depends on qualified business use, correct classification and how personal or entertainment use is handled, and it can be recaptured if business use later drops. Treat any headline 'write off the whole jet' claim with caution and get advice specific to your situation.
What is bonus depreciation on aircraft?
Bonus depreciation allows a qualifying business to deduct a large percentage of an aircraft's cost in the first year of service rather than over the full MACRS recovery period. The percentage has changed with legislation — it was phasing down after 2022, and 2025 federal legislation restored 100% bonus depreciation for qualifying property. Whether a specific aircraft, buyer and use qualify, and the exact effective dates, are technical points to confirm with a qualified aviation tax advisor.
How many years do you depreciate an aircraft over?
Under MACRS, business aircraft commonly use a five-year recovery period for non-commercial business use and a seven-year period for commercial (for-hire) operations, though the correct period depends on the actual use. Bonus depreciation, when available and elected, can bring much of that deduction into year one instead.
Is this tax advice?
No. This is a general educational overview of concepts that come up when buying a business aircraft. Aircraft tax is technical, fact-specific and changes with legislation, and it varies by jurisdiction. Always engage a qualified aviation tax advisor and counsel before structuring a purchase or relying on any tax position.
Structuring a purchase?
Our advisors work alongside your tax counsel to structure the acquisition — use, ownership entity and financing — so the economics and the tax position line up before you sign.