100% Bonus Depreciation: Expert Insights on What Aircraft Owners Need to Know for 2025
Jet Linx recently brought together legal, tax, and aviation experts to discuss a rare opportunity for private aircraft owners: the return of 100% bonus depreciation for business aircraft in 2025.
Our recent Bonus Depreciation webinar brought together legal, tax, and aviation experts to discuss a rare opportunity for private Aircraft Owners: the return of 100% bonus depreciation for business aircraft in 2025. Moderated by Doug Gollan, Founder and Editor-in-Chief of Private Jet Card Comparisons, the panel featured four leading experts:
- Matt Mentzer, Tax Attorney and CPA at Jetlaw
- Daniel Cheung, Principal and Co-founder of Aviation Tax Consultants
- Paul Kloet, Senior Vice President of Sales & Marketing at Jet Linx
What Is Bonus Depreciation and Why Does It Matter?
Bonus depreciation allows taxpayers to deduct a significant portion of an aircraft’s acquisition cost in the year it is placed into service, provided strict qualification criteria are met.
The 2017 Tax Cuts and Jobs Act temporarily expanded bonus depreciation to 100% for qualifying assets, including private aircraft. That benefit was phased out over recent years, but it’s back for aircraft purchased and placed into service by December 31, 2025. The renewed provision makes it possible for buyers to offset large taxable gains with accelerated deductions.
“If you acquire and place an aircraft into service this year, you may be eligible for a full deduction of the acquisition cost,” Mentzer noted. “But the devil is in the details because the aircraft must primarily support a trade or business, not personal travel.”
Business vs. Personal Use: Navigating the Rules
To qualify for bonus depreciation, an aircraft must be used for 50% or more qualified business purposes in the year of purchase and beyond. Personal and entertainment flights can complicate compliance.
“If you buy a plane for business but want to use it for holiday trips, that’s where Jet Linx can help. We often use our Jet Card program to handle personal travel, ensuring the owner’s aircraft maintains its qualified business-use percentage,” Kloet said.
Cheung noted that not all business users are created equal. For example, leasing an aircraft to related entities, using it for entertainment, or heavy chartering in the first year can all disqualify flights from counting as business travel. Maintaining qualified business use can be nuanced.
The Importance of Record-Keeping and Documentation
Detailed, accurate records are essential for tax filings but also defend your position in the event of an IRS audit. Passenger manifests, trip purposes, itineraries, and meeting documentation all play a role in proving business intent.
“Record-keeping isn’t just a best practice, it’s your first line of defense,” Cheung emphasized. “If an audit occurs, your ability to validate every flight can determine whether you keep the deduction.”
Kloet added that Jet Linx supports its clients by maintaining meticulous records, providing owners with data that tax professionals like Cheung and Mentzer use to ensure compliance.
Planning Ahead: The Aircraft Acquisition Process
Purchasing and placing an aircraft into service takes time, often 90 days or more. Between selecting a broker, sourcing available aircraft, arranging pilot hiring and training, and completing maintenance or retrofitting, the process can’t be rushed.
“This isn’t like buying a car on December 30,” Kloet warned. “If you want to take advantage of current-year tax benefits, the time to act is now.”
State vs. Federal Tax Considerations
While bonus depreciation is a federal tax provision, its treatment varies at the state level. Some states follow federal rules automatically. Other states, like California, have decoupled entirely, eliminating bonus depreciation for state taxes.
“Your federal return may allow a full deduction, but your state may not. Understand the local impact before finalizing a purchase,” Mentzer cautioned.
5 Key Takeaways
- Qualifying for Bonus Depreciation. Taxpayers may deduct the full acquisition cost of an aircraft in the year it’s placed into service if business use and qualification requirements are met. The aircraft must be used at least 50% for qualified business purposes.
- Business vs. Personal Use. Mixing personal travel with business flights can reduce tax benefits. Consider a Jet Card for personal trips to stay compliant.
- Record-Keeping and Compliance. Keep clear records of who flew, where, and why. Accurate documentation is essential if the IRS reviews your deductions.
- Acquisition Process and Timing. Buying and onboarding an aircraft can take several months. Start early if you want to take advantage of tax savings this year.
- State vs. Federal Tax. Tax rules can differ by state, so check both federal and state laws before committing to a purchase.
Ready to Take Flight? The Opportunity Awaits.
For entrepreneurs and executives considering a new chapter in business aviation, the return of 100% bonus depreciation is a rare and timely opportunity. With Jet Linx at your side, every detail is managed, every advantage maximized, and every moment of your journey is tailored to your needs.
Connect with Jet Linx and experience complete peace of mind every time you fly.
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