02 May 2025, 14:38 [ UTC - 5; DST ]
|
| Username Protected |
Message |
|
Username Protected
|
Post subject: Re: 100% Bonus Depreciation  Posted: 21 Feb 2024, 23:00 |
|
 |
|
|
Joined: 06/15/12
Posts: 814
Post Likes: +1003
Location: KIWA
Aircraft: Debonair 35 - B33
|
|
Username Protected wrote: Sorry for my poor communication.
Thats what I was talking about. I show the plane on the balance sheet and the accumulated depreciation for the plane under that. I don’t group it into a standard bucket like office furniture etc. I do the same with real estate.
My point was that 100% deprecation drops the total asset value and this will have an impact in certain circumstances.
Don’t get me wrong, if I could claim 100% I would be!
Andrew I sell businesses and raise capital for a living, and I've never run into a situation where a fully depreciated asset (on paper) affected the outcome in any way. Lenders, buyers, and investors will typically be most interested in the FMV of assets. Now, you will have to report the gain on sale for the recapture in the event the basis is stepped up or the asset is sold for more than the value on the balance sheet.
Accounting for depreciation for book purposes should be a GAAP method not by a method allowable for federal or state tax purposes.
|
|
| Top |
|
|
Username Protected
|
Post subject: Re: 100% Bonus Depreciation Posted: 22 Feb 2024, 18:35 |
|
 |
|
|
 |
Joined: 05/01/14
Posts: 9261
Post Likes: +15850
Location: Операционный офис КГБ
Aircraft: TU-104
|
|
Username Protected wrote: Accounting for depreciation for book purposes should be a GAAP method not by a method allowable for federal or state tax purposes. Exactly! Bonus depreciation is for tax only. It has no impact on GAAP financials other than the increased cash flow and equity from the tax savings up front. And yes, I have never heard of anyone buying a business and valuing the assets based on their tax or GAAP basis. No one with any business experience should think book or tax depreciation rules mirror economic depreciation. They don't. When you sell the plane down the road you will have to pay taxes on the full value, and that will mean less gain recorded, but that is down the road. Anyone should be happy to pay a tax bill in 5 years rather than today.
_________________
Be kinder than I am. It’s a low bar.
Flight suits = superior knowledge
|
|
| Top |
|
|
Username Protected
|
Post subject: Re: 100% Bonus Depreciation Posted: 26 Feb 2024, 15:27 |
|
|
|
|
Joined: 10/18/11
Posts: 1096
Post Likes: +648
Aircraft: Seabee Aerostar 700
|
|
|
one other effect we need to consider,
when COVID started there was a huge rush to buy aircraft so the rich didn't need to mix with the masses. together with the available $$ it created a buying boom and thus prices increased.
as things settle down I think we will see what the actual increase in prices are.
|
|
| Top |
|
|
Username Protected
|
Post subject: Re: 100% Bonus Depreciation Posted: 04 Aug 2024, 11:07 |
|
|
|
|
Joined: 05/23/13
Posts: 7798
Post Likes: +10185
Company: Jet Acquisitions
Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Username Protected wrote: Are new ac still eligible for 100% with the current rules or are all ac at 80% for 2024 They are all 60% for 2024 On new aircraft orders placed this year, if you meet certain requirements, you can claim 60% even if the aircraft is delivered next year.
|
|
| Top |
|
|
Username Protected
|
Post subject: Re: 100% Bonus Depreciation Posted: 04 Aug 2024, 18:30 |
|
|
|
|
Joined: 10/14/11
Posts: 332
Post Likes: +48
Location: Houston , TX
Aircraft: KA 350/ EMB505
|
|
Username Protected wrote: Are new ac still eligible for 100% with the current rules or are all ac at 80% for 2024 They are all 60% for 2024 On new aircraft orders placed this year, if you meet certain requirements, you can claim 60% even if the aircraft is delivered next year.
I'm under the understanding there is a clawback 1 year for AC that were on order with a certain deposit amount? IE - if delivered in 2024 but deposits made in prior years that the previous years % is applicable. At least thats what our accountants seem to think 
|
|
| Top |
|
|
Username Protected
|
Post subject: Re: 100% Bonus Depreciation Posted: 04 Aug 2024, 22:53 |
|
|
|
|
Joined: 05/23/13
Posts: 7798
Post Likes: +10185
Company: Jet Acquisitions
Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Username Protected wrote: They are all 60% for 2024
On new aircraft orders placed this year, if you meet certain requirements, you can claim 60% even if the aircraft is delivered next year. I'm under the understanding there is a clawback 1 year for AC that were on order with a certain deposit amount? IE - if delivered in 2024 but deposits made in prior years that the previous years % is applicable. At least thats what our accountants seem to think
Correct, if aircraft was ordered in 2023, but was delivered in 2024, as long as the deposit requirements were met, the bonus appreciation would be 80%
|
|
| Top |
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum
|
Terms of Service | Forum FAQ | Contact Us
BeechTalk, LLC is the quintessential Beechcraft Owners & Pilots Group providing a
forum for the discussion of technical, practical, and entertaining issues relating to all Beech aircraft. These include
the Bonanza (both V-tail and straight-tail models), Baron, Debonair, Duke, Twin Bonanza, King Air, Sierra, Skipper, Sport, Sundowner,
Musketeer, Travel Air, Starship, Queen Air, BeechJet, and Premier lines of airplanes, turboprops, and turbojets.
BeechTalk, LLC is not affiliated or endorsed by the Beechcraft Corporation, its subsidiaries, or affiliates.
Beechcraft™, King Air™, and Travel Air™ are the registered trademarks of the Beechcraft Corporation.
Copyright© BeechTalk, LLC 2007-2025
|
|
|
|
