Private jet travel may seem like a luxury reserved for the ultra-wealthy, but Fractional Jet Ownership allows for a cost-effective way to experience the convenience and comfort of private aviation. One of the many benefits of fractional aircraft ownership is the potential tax advantages it can offer. Understanding some of the possible tax benefits of fractional jet ownership could make fractional ownership an even better option for those considering private aviation.
Tax law allows assets you acquired and placed in service for use either in your trade or business or income-producing activity to be expensed over a period of time (i.e., 5 years), with the possibility of a majority of the write-off in the first few years. Fractional Jet Owners may be able to take advantage of this “depreciation deduction” on the purchase of their interest in a Citation CJ3+ or other Cessna Citation aircraft.
For those who use their Fractional Jet Ownership for business purposes, you may be able to deduct the cost of your flights as a business expense, which may result in a reduction of your taxable income. Documenting the use of your fractional interest (business vs. personal) is key to capturing the maximum amount of your travel cost deduction.
Fractional Jet Owners, with proper planning, have the ability to avoid or reduce state sales tax on their aircraft purchase. In some states, Fractional Owners may be exempt from paying sales tax on their Cessna Citation aircraft. While other states provide Fractional Owners with the possibility to reduce their sales tax liability by purchasing the aircraft through a leasing structure.
There are a variety of tax benefits of Fractional Jet Ownership that can make this traveling option well worth the investment. However, it is important to note that every person’s or entity’s tax situation is unique and what works for one person or entity may not work for another. It is recommended to consult with an experienced aviation tax professional to ensure that investments in Fractional Jet Ownership are protected.
flyExclusive offers an expansive fleet of expertly maintained Cessna Citation jets, including the Citation CJ3+, as well as every other travel luxury that may be needed. Their team of experienced aviation professionals is available around the clock to get clients where they need to be and answer any questions they may have along the way. To learn more about Fractional Jet Ownership, visit flyExclusive's website today.
*This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.