Strategies for taking Bonus Depreciation on a new aircraft purchase are discussed. The reader is cautioned that this article is intended only to acquaint the reader with the issues and should read the Statute and Temporary Regulations.

Retain independent legal, tax, and accounting advice to determine if their aircraft is eligible for Bonus Depreciation. Bonus Depreciation is intended to incent the production and acquisition of new capital assets.

Due to the backlog in turbine aircraft orders, few new business aircraft will be built solely as a result of the Economic Stimulus Act of 2008. Bonus Depreciation will be closely scrutinized by the Service.

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