It's a Great Time to Buy - 4th Quarter Aircraft Buying Advantages

After much anticipation throughout this year, we breathe a small sigh of relief. After its proposal a few weeks ago, the President signed the Small Business Jobs Act into law that includes the extension of Bonus Depreciation (50%) for new aircraft purchased in the 2010 calendar year. This law also includes increased Section 179 Expensing for small businesses. The previous Section 179 allowed expensing up to $250,000; for 2010 it has been increased to $500,000 on new purchases.

An example* of the tax savings on a new aircraft purchased in the 4th quarter of 2010 is below:

Purchase Price: $610,000
Section 179 Expensing: $500,000
50% Bonus Depreciation: $ 55,000
Normal Depreciation $ 2,750

Total possible deduction in 2010: $557,750

*Please contact your Aviation Tax Advisor for advice regarding how the tax advantages could be of benefit to you and your business.

This is a great option for businesses considering a new aircraft purchase, but that is not the only reason to consider an aircraft purchase before the end of the year; rates have decreased recently and provide very attractive fixed programs up to 20 years. This is a function of the market as well as lenders increased appetite to boost their portfolio before year-end. It's a great time to buy!

Rates are currently ranging from 5.50% - 5.95% for loan amounts above $100,000. The more aircraft you purchase the better the rate incentive.

To find out more about our current financing programs for your purchase this year please click here to request a quote or call an IFA aircraft financing representative at
800-920-5190.