Capitalizing on the TCJA
HOW WILL THE TAX CUTS AND JOBS ACT OF 2017 (“TCJA”) AFFECT BUSINESS AVIATION LENDING? AND WHAT DOES THIS MEAN FOR YOU?
While it is too early to speak with any certainty, it appears that there is a strong likelihood of more aircraft financing in 2018, including tax leases, as a result of the TCJA.
A surplus of capital/available funds will be created for many corporations by the decreased corporate tax rate.
Bonus depreciation has increased from 50% to 100% on equipment, including aircraft.
Under the TCJA, you will no longer be allowed to defer taxable gain on the sale of aircraft through the use of a like-kind exchange.
Lenders offering tax leases expect their lease portfolio to grow.
Originally published in Business Aviation Advisor Magazine, May/June 2018.