Posts

Showing posts from April, 2018

2017 Tax Act - Article by Chris Jacob

At the end of 2017, Congress passed and President Donald Trump signed what is now Public law no. 115-97, the 2017 “Tax Cuts and Jobs Act” ("the Act").The Act has several immediate and long-term effects on general aviation tax issues that aircraft owners should note.
Elimination of Section 1031 Exchanges for Personal Property First, the Act eliminates like-kind exchanges under Section 1031 of the Internal Revenue Code for all personal property, including aircraft, beginning in 2018.For those taxpayers who properly initiated 1031 exchanges prior to December 31, 2017 by acquiring a replacement aircraft or selling a relinquished aircraft, the benefits of a 1031 exchange will remain available subject to the previously applicable rules to allow the taxpayers to consummate the full tax-deferred exchange.All other aircraft owners will be henceforth subject to recapture for any taxable gain.Thus, owners with fully tax-depreciated aircraft in particular should plan to face a considera…