Managing Director Mary Duffy's thoughts regarding the planning opportunities and potential pitfalls of owning and operating a private aircraft are featured in an interview recently published by CFO Dive, a business publication aimed at chief financial officers. Tax law changes included in the Tax Cuts and Jobs Act of 2017 such as 100% bonus depreciation helped lead to a boom in demand for private aircraft. However, Duffy pointed out that after acquiring a private aircraft, planning is necessary to ensure that a company can deduct the full amount of the purchase price in the year of acquisition. Companies should try to restrict the use of the plane in the first year to business trips, Duffy said, because the amount that can be deducted can potentially erode away each time the plane is used for a non-business purpose. Companies should wait to allow personal use of the aircraft until after the year the plane is placed in service and bonus depreciation is taken, she added.

Mary Duffy is a Managing Director in Andersen's US National Tax office and is the co-leader of Andersen's accounting methods team. Mary also advises clients on tax policy and legislative matters and is a frequent speaker for Tax Executive Institute, BNA seminars, Andersen's Family Office Roundtables and other events.

CFO Dive

March 29, 2022

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