New Tax Law: What You Need To Know About Private Jet Ownership Source Bing.com
With the new tax law passed in December 2017, private jet ownership has been subject to some changes. It is important to understand the new regulations in order to avoid any potential penalties or fees. In this article, we will discuss the updates to the law, how they affect current and potential private jet owners, and the steps you can take to ensure you are in compliance.
Overview of the New Tax Law
The new tax law, known as the Tax Cuts and Jobs Act (TCJA), was passed in December 2017 and went into effect on January 1, 2018. Under the new law, the deduction for business aircraft is limited to $50,000 per year. This means that private jet owners will only be able to deduct up to $50,000 of their total expenses for the year. Additionally, the new law imposes a limit on the amount of interest that can be deducted for business aircraft. Interest deductions are limited to 30% of adjusted taxable income.
Impact on Current Private Jet Owners
For current private jet owners, the new law may have a major impact on their finances. Those who have already taken out large loans to purchase a private jet may be hit with a significant tax bill. Additionally, the new law may also limit the amount of interest they can deduct on their loan. This could result in a higher tax burden for private jet owners.
Impact on Potential Private Jet Owners
For potential private jet owners, the new law may make it more difficult to purchase a private jet. With the new limits on deductions and interest, it may be harder to qualify for a loan. Additionally, the increased cost of owning a private jet may make it less appealing for some potential buyers.
Steps to Ensure Compliance
Private jet owners should take steps to ensure they are in compliance with the new tax law. This includes keeping accurate records of expenses and income, as well as consulting with a tax professional to understand the new regulations. Additionally, private jet owners should consider refinancing their loans in order to take advantage of the new tax law.
Conclusion
The new tax law has had a major impact on private jet ownership. Current owners may face increased tax burdens, while potential owners may find it more difficult to qualify for loans. It is important for private jet owners to take steps to ensure they are in compliance with the new regulations. By understanding the new law and taking advantage of available options, private jet owners can minimize their tax burden and ensure they remain in compliance.
