How the Wealthy Write Off Private Jets

With the reinstatement of 100% bonus depreciation under the OBBB Act, 2025 marks a prime opportunity for business owners, entrepreneurs, and high-net-worth individuals to leverage private aviation as a strategic tax planning tool. Whether you’re considering fractional ownership, on-demand charter, or full aircraft acquisition, each structure offers distinct advantages under current IRS guidelines—especially when aircraft are used primarily for qualified business purposes.

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Full Ownership: Maximum Control, Maximum Tax Incentives

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For those seeking complete control over their travel, aircraft selection, and branding, full ownership remains the most robust option—particularly in light of the revived 100% bonus depreciation provision. Initially introduced under the Tax Cuts and Jobs Act, this provision now applies again in 2025 to both new and pre-owned aircraft placed in service this calendar year, thanks to the OBBB.

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Tax Advantage: When used for over 50% qualified business purposes, full aircraft owners may:
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• Depreciate 100% of the aircraft's purchase price in the first year (for qualifying aircraft),
  
• Deduct a wide range of operational costs including fuel, crew salaries, insurance, maintenance, training, hangar, and management fees,
  
• Structure ownership through an entity to align with IRS and FAA requirements for business usage and compliance

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Fractional Ownership: Flexibility with Tax Efficiency

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Fractional programs, such as NetJets and Flexjet, allow individuals or businesses to purchase a portion of an aircraft—often beginning at 1/16th share. This model provides

guaranteed flight hours, access to a professionally managed fleet, full crew services, and streamlined scheduling without the responsibilities of full ownership.

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Tax Advantage: Under Section 168(k) of the Internal Revenue Code, fractional shares of aircraft used predominantly for qualified business purposes may be 100% depreciated in the year placed in service. Additionally, ongoing operating costs—such as management fees, fuel, and maintenance—may be deductible as ordinary and necessary business expenses, assuming appropriate substantiation and documentation.*

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On-Demand Charter: Pay-As-You-Fly Convenience

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For individuals or businesses with variable travel needs, on-demand charter offers the freedom of private aviation without any capital investment or asset exposure. Chartering provides access to a broad range of aircraft types, customizable scheduling, and full-service amenities without ownership burdens.

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Tax Advantage: When charter flights are exclusively used for business purposes, the cost of the flight is typically fully deductible as a business expense. Unlike ownership models, there are no depreciation schedules or asset capitalization requirements—making this an attractive, low-commitment way to reap business travel tax benefits.

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Why Timing Matters: The 2025 Window of Opportunity

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The availability of 100% bonus depreciation is here to stay but could change under the next administration and proper planning is crucial. To qualify, aircraft must:

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• Be placed in service in 2025 (delivery must occur and contract executed post-Inauguration Day—January 20, 2025),
  
• Be used more than 50% for qualified business purposes, and
  
• Meet other IRS documentation and substantiation requirements.
  

Failing to properly structure the purchase or misreporting usage can result in disqualification or IRS penalties.

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How SOLJETS Helps You Navigate Tax & Aviation Strategy

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As a premier business aviation brokerage, SOLJETS provides clients with end-to-end expertise—from market intelligence and aircraft acquisition to tax-aligned transaction structuring and post-sale compliance support. Our team works closely with tax advisors, flight departments, and legal professionals to ensure that your aviation investment is both operationally sound and tax-efficient.

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Whether you're considering a light jet for regional travel, a midsize cabin for national reach, or a long-range aircraft for international access, SOLJETS tailors every solution to your business needs, usage patterns, and financial goals.
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“The return of 100% bonus depreciation, along with the increase of Section 179 Expensing to $2.5 million, will offer taxpayers significant tax incentives to purchase a business aircraft in 2025. Proper planning and documentation are critical to capturing these generous tax incentives.” — Daniel Cheung, Principal, Aviation Tax Consultants