29 Jan 2026, 08:11 [ UTC - 5; DST ]
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Post subject: Re: TBM 980  Posted: 20 Jan 2026, 09:22 |
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Joined: 01/28/13
Posts: 6365
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Location: Indiana
Aircraft: C195, D17S, M20TN
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Finally “different strokes for different folks”! Just like the “political” discussions…. Thousands of threads with no definitive results, and now we have it. Thx Chip et al. 
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Chuck
KEVV
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Post subject: Re: TBM 980 Posted: 20 Jan 2026, 09:39 |
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Joined: 12/30/15
Posts: 1835
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Location: Charlotte
Aircraft: Avanti-Citabria
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If I had to suffer with a 31000 foot ceiling on a $4M+ aircraft I would have to choose Cirrus BBSJ- Big beautiful short jet solely due to cabin altitude of 8,000 VS TBM 9800 feet. My flatlander self gets a headache at 8,000 feet. M2 would be my overwhelming choice if I were going mainstream  Please ignore the comeback company who makes a fuel sipping turboprop with a cabin altitude of 6200 at FL390
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I wanna go phastR.....and slowR
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Post subject: Re: TBM 980 Posted: 20 Jan 2026, 10:59 |
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Joined: 11/08/12
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Location: Live in San Carlos, CA - based Hayward, CA KHWD
Aircraft: Piaggio Avanti
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Username Protected wrote: It should be the case that if you buy a business capital asset, you should be able to expense in the year of acquisition. This is fair, since you didn't make the cost of the equipment in profit, and it is fair since you aren't being cheated on the time value of money over a long depreciation schedule. So in that scheme, when you are done with the asset and you sell it, you count that as income - right?
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-Jon C.
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Post subject: Re: TBM 980 Posted: 20 Jan 2026, 23:15 |
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Joined: 12/03/14
Posts: 21167
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Company: Ciholas, Inc
Location: KEHR
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Username Protected wrote: So in that scheme, when you are done with the asset and you sell it, you count that as income - right? Yes. This already happens with depreciation. If you sell it for more than the undepreciated value, that is profit and you pay taxes on it. if you sell it for less, that is loss. On fully depreciated property, when you sell, the entire sale is profit since the undepreciated value is $0. My plane is 100% bonus depreciated. If I sell it, that's profit to be taxed. The only fair system is to expense all purchases and tax all sales of assets in the year they happen. Anything else cheats the taxpayer for the time value of money. Mike C.
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Email mikec (at) ciholas.com
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Post subject: Re: TBM 980 Posted: 20 Jan 2026, 23:25 |
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Joined: 12/10/07
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Location: Minneapolis, MN (KFCM)
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Username Protected wrote: So in that scheme, when you are done with the asset and you sell it, you count that as income - right? Yes. This already happens with depreciation. If you sell it for more than the undepreciated value, that is profit and you pay taxes on it. if you sell it for less, that is loss. On fully depreciated property, when you sell, the entire sale is profit since the undepreciated value is $0. My plane is 100% bonus depreciated. If I sell it, that's profit to be taxed. The only fair system is to expense all purchases and tax all sales of assets in the year they happen. Anything else cheats the taxpayer for the time value of money. Mike C.
I always looked at accelerated depreciation on personal assets as an interest free loan from the government. In the end you have to pay the loan back but you get to use the money for free in the meantime. Plus there are occasionally ways to reset your basis.
For a business asset it's different.
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-lance
It's easier to fool people than to convince them that they have been fooled.
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Post subject: Re: TBM 980 Posted: 21 Jan 2026, 00:21 |
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Joined: 12/03/14
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Company: Ciholas, Inc
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Username Protected wrote: I always looked at accelerated depreciation on personal assets as an interest free loan from the government. Explain what you mean by "depreciation on personal assets". Depreciation only applies to business or income producing property, per the IRS. Mike C.
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Email mikec (at) ciholas.com
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Post subject: Re: TBM 980 Posted: 21 Jan 2026, 10:56 |
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Joined: 08/12/08
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Location: Santa Barbara, CA
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Username Protected wrote: Explain what you mean by "depreciation on personal assets".
Depreciation only applies to business or income producing property, per the IRS.
Mike C. Lance can explain his thoughts but aircraft are “tangible personal property” pursuant to the IRS tax code. “Personal” use of “business” aircraft is an area that some believe has been abused. The IRS announced in 2024 that they were going to look more closely at these deductions. https://www.nbcnews.com/business/taxes/ ... rcna139851
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ABS Life Member
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Post subject: Re: TBM 980 Posted: 21 Jan 2026, 11:26 |
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Joined: 12/10/07
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Location: Minneapolis, MN (KFCM)
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Username Protected wrote: I always looked at accelerated depreciation on personal assets as an interest free loan from the government. Explain what you mean by "depreciation on personal assets". Depreciation only applies to business or income producing property, per the IRS. Mike C.
Yeah that was poorly worded. I guess what I meant to say was assets that aren't used to generate income. Things like cars, hangars, and in many cases airplanes.
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-lance
It's easier to fool people than to convince them that they have been fooled.
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Post subject: Re: TBM 980 Posted: 21 Jan 2026, 11:35 |
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Username Protected wrote: 100% depreciation in the year of purchase is correct. You are taxed on the profit you actually made after deducting what you spent. If you buy a $2M drill rig, and bring in $2M revenue, you made $0.
Multi year deprecation is an interest free loan to the government. You pay taxes on profit you didn't actually make, and then in future years, you get to deduct a fraction of that and get a benefit in less valuable future dollars. If you bought a $2M drill rig, and bring in $2M revenue, the government thinks you made a $1.8M profit and taxes you that way. The phantom profit then requires borrowing money to pay off, thus an interest free loan to the government.
For something like real estate with a 39 year depreciation schedule, you only get a net benefit of about 40% of the true cost, so you got taxed on about 60% of the cost which was never profit.
Depreciation is a huge penalty for investing in capital equipment. All expenditures, be them small or large, should be expensed in the year they occur to be totally fair. So 100% bonus depreciation is proper and correct and should apply to everything.
Mike C. why not depreciate 100% of the capital in any scenario? for example, $1M in income, $2M depreciation; can't you just have the loss carry-over to the next year? or does loss carry-over not occur of the loss is from depreciated capex?
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"Find worthy causes in your life."
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Post subject: Re: TBM 980 Posted: Yesterday, 17:06 |
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Coming Over Soon- Attachment: N980EB.png
Please login or Register for a free account via the link in the red bar above to download files.
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Be careful what you ask for, your mechanic wants to sleep at night.
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Post subject: Re: TBM 980 Posted: Today, 06:03 |
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Joined: 07/28/15
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Username Protected wrote: Coming Over Soon- Attachment: N980EB.png Think I know the owner of this one. Coming to MQS?
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