Bonus Depreciation for Higher 2013 Tax Rates

Posted on December 12, 2012


Fiscal Cliff deal extends bonus depreciation and retroactively enhances expensing election for 2012 and into 2013




By Scott Battle

50% Bonus Depreciation may be available for new Diamonds contracted for purchase in 2012 and delivered in 2013*.

*Requirements include a binding contract in place before the end of 2012, along with a 10% deposit, and the aircraft must be used primarily for business.

Here’s an example of potential 2013 depreciation for a new Diamond DA42 NG-VI costing $899,000:

First-year Income Tax Deduction in 2013 = $539,400. This includes 50% Bonus Depreciation and 20% for the first-year of MACRS.

$539,400 equals 60% of the $899,000 aircraft cost for a tax savings of $188,790, based on a 35% income tax bracket.  Should the top income tax rate rise to 39.6% with the failure to extend the current tax rates, the tax savings available becomes $213,602.

Don’t wait – legal, accounting, and financing work cannot be done overnight.

Please contact Scott Battle at Advocate Consulting Legal Group, PLLC to discuss how you can take advantage of Bonus Depreciation in 2013… !

Call (888) 325-1942 or email




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