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Hopefully Some Help for GA and Tax Write Offs

G400AV8R

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Stimulus bill offers good news for general aviation


Bonus depreciation, longer-range carry-backs among benefits approved by the House
President Barack Obama’s $819 billion stimulus bill, which was passed by the House Wednesday evening, would be a good thing for general aviation, according to one accounting firm. Aviation Tax Consultants (ATC) detailed for Aero-News Network the bonus depreciation, capital improvement deductions and carry-back benefits offered in the American Recovery and Reinvestment Tax Act of 2009 House Resolution 598.
According to ATC, the Act includes the return of 50 percent bonus depreciation for factory new aircraft purchases, retroactive to January 1, 2009. Planes built in prior years can still qualify if the manufacturer or dealer used them only as a demonstrator, and were never titled to a taxpayer. “We do expect similar language that will allow bonus depreciation for aircraft orders placed in 2009 and delivery occurring in 2010,” ATC told the Web site.
The bill would also allow small-business owners to deduct as much as $250,000 of capital improvement for the year of acquisition, in lieu of recovering these costs over time through depreciation; and there are provisions in the package to carry back a current year’s net operating loss for three to five years. Current law allows carry-backs of loss for only two years. And, according to ATC, if buyers used extended delivery provisions for bonus depreciation in 2008, 50 percent bonus depreciation can be taken on their 2009 income tax returns. If the depreciation creates a net operating loss for 2009 taxes, buyers can carry back the loss as much as five tax years, earning tax refunds from prior years.
The House voted to approve the bill Wednesday, 244-188. The Senate may well alter the package and raise the price tag before sending it back to the president in February.
To read more, go to...
[http://www.aero-news.net/index.cfm?ContentBlockID=824c96c3-7bcf-4f85-889f-0d24b606ad1c&] [http://www.govtrack.us/congress/bill.xpd?bill=h111-598]
 

bizjet800

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Although this may or may not be good for some in aviation, the fact no one seems to realize is that someday those of us who pay taxes will actually have to pay it back! This stimulus might as well be called the biggest redistribution of wealth in human history!

Case in point: Wells Fargo announced some wild 12 day party in Vegas for their top sellers. All this after they received 25 Billion in "stimulus."
 

ksu_aviator

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Although this may or may not be good for some in aviation, the fact no one seems to realize is that someday those of us who pay taxes will actually have to pay it back! This stimulus might as well be called the biggest redistribution of wealth in human history!

Case in point: Wells Fargo announced some wild 12 day party in Vegas for their top sellers. All this after they received 25 Billion in "stimulus."

All the more they shouldn't have received a bail-out. By letting the government fund them they also consented to the government's (and the public's) scrutiny.

Never mind that the government has to force people to give them money and still can't brake even. At least Wells Fargo made money until...well...until the government intervened and told them who to loan to.
 

Headwind

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OK- This new government, against business owning jets, will offer bonus depreciation so more american companies will buy jets.
Also understand there will be help for those who bought more home than they can afford, and late on payments, but none for people up to date on house payments.
 

Pez D. Spencer

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We had bonus depreciation for 2008 and look what happened to the aircraft market. It tanked. The democratic party controlled congress attacks GA without regard to the BILLIONS GA puts into the economy. This stimulus bill sounds like anything but stimulus. Get rid of the pork, cut taxes from the top down -- which will create jobs (democrats don't pay them anyway), and maybe we'll get somewhere. I don't need them to cut me a check, just cut my taxes.
 
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