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]
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]