Bonus Depreciation Updates Post-Second Inauguration

The landscape for bonus depreciation has shifted significantly following the legislative actions enacted during President Donald Trump's second term. These changes, effective as of Jan. 20, 2025, have direct implications for owners and operators of business aircraft, as well as for high-net-worth individuals and corporations seeking to optimize tax planning strategies.

Overview of Bonus Depreciation

Bonus depreciation allows taxpayers to immediately deduct a substantial percentage of the purchase price of eligible business assets, including new and used aircraft, in the year the asset is placed in service. This accelerated depreciation is a powerful tool for managing taxable income and cash flow, particularly in capital-intensive sectors such as business aviation. I.R.C. § 168(k).