The American Recovery and Reinvestment Act of 2009 (the “Stimulus Package”) extended Bonus Depreciation benefits for prospective aircraft buyers for another year. In order to be Bonus Depreciation eligible, an asset must be MACRS property.
50% of the cost of Bonus Depreciation eligible property may be deducted in the year the property is acquired. The remaining 50% of the cost or “basis” remains eligible for depreciation in future years according to normal depreciation rules.
There are numerous eligibilty requirements, including “placed in service” date and “written binding contract.” Sale leaseback and syndication transactions continue to enjoy favorable treatment provided by the Temporary Regulations.
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