GA Gets A Tax Break
When Congress passed a tax law back in 2003 that allowed buyers of new general aviation aircraft to depreciate up to 50 percent of the value in the first year (providing the aircraft was bought for business use), the incentive was credited with helping to boost sales by as much as 30 percent. Now Congress has passed a new economic incentive plan that will extend that tax break through 2008, for aircraft that cost at least $200,000. Under the new "economic stimulus package," the owner must put a deposit on the airplane this year and take delivery before the end of 2009. Diamond Aircraft already is taking advantage of the new law to tempt buyers. Take delivery of your new airplane by April 15, Diamond says, and you'll get $3,000 cash back to pay for a tax advisor to figure it all out for you.
More details and analysis of the new law can be found at Advocate Consulting's Web site.