Would Buying a Corporate Jet Make Sense for You?

Would Buying a Corporate Jet Make Sense for You?

Would Buying a Corporate Jet Make Sense for You?

One of the most common aspects of the business world is travel. People come and go every day for all kinds of reasons and to all kinds of locations worldwide. While most air travelers typically do the bulk of their traveling with commercial airlines, there are many major corporations that have their own private company jets. In addition, there are some ultra-wealthy individuals that own private jets and use them as part of their business endeavors. There are several advantages to owning a corporate jet, including some tax breaks that you might not be aware of.

It’s All About Time

But first, what are the practical advantages of owning a corporate jet? The main advantage is that you save time. In the business world, time is extremely valuable, or in other words, time is money. When you travel in a private jet you don’t have to spend nearly as much time on the ground on either end of your trip. You also have a lot more airports to choose from when you fly a corporate jet so you won’t face as much congestion, either. You get to skip long check-in lines as well as TSA so that saves huge bundles of time. You also get to fly exactly when you want instead of being tied to the airlines’ and airports’ schedule. You’ll likely fly direct without layovers or connecting flights, either. There’s no question that you can save a lot of time by flying private. You don’t have to fight with other passengers for space, which is also a big plus.

Big Tax Savings Available

So besides the obvious advantages of saving time and enjoying a much more relaxed and comfortable ride, there are some big tax savings available to companies that own corporate jets. Of course, purchasing a private jet can be expensive. Entry-level models typically start between $4 and $8 million, while the more expensive ones can even reach hundreds of millions of dollars. However, thanks to the IRS’s depreciation policy these high-flying shuttle buses practically pay for themselves in just a few years’ time. Because the IRS assumes a corporate investment has only a limited number of years of serviceable lifetime, a business can actually recoup the entire purchasing expense of the asset many years before it actually runs out of value. Companies can write off 70 percent of their cost of a private jet within the first three years of service and the IRS has determined that corporate jets have a useful life span of five years.

Don’t Forget Bonus Depreciation

These days, bonus depreciation also exists, which helps businesses even more. This bonus was first added to help stimulate the economy after the recession in 2000. Currently, it hastens the depreciation rate by 50 percent. While many in Washington would like to eliminate depreciation write-offs, lawmakers have continued to renew them, including last year when they were extended through 2019. However, the bonus percentage rate will drop from 50 percent to 40 percent in 2018 and to 30 percent in 2019.

 

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

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MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

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