New tax incentives make 2008 the “year of the aircraft buyer.”

From my perspective, anytime is the right time to buy a new airplane. Aircraft ownership offers so many personal and business advantages today; the decision to fly a private airplane is a proverbial no-brainer.

With all that said, recent tax legislation has made this year the best time I can recall to make your move into aircraft ownership. Our friends in Washington recently passed the Recovery Rebates and Economic Stimulus for the American People Act 2008, which offers accelerated tax deductions to qualifying businesses that take delivery of a new aircraft before the end of the year.

You’ll be amazed by how much the new legislation will allow you to deduct this year, especially if you take delivery by September 30. Advocate Consulting provided the following breakdown of estimated tax deductions on new Diamond and Mooney aircraft offered by Premier Aircraft Sales:

Diamond Model	Cost**	2008 Deduction*	Deduction % of cost
DA20	$183,000	$183,000	100%
DA40 XLS	$337,500	$302,500	90%
DA42	$608,470	$465,082	76%

Mooney Model	Cost**	2008 Deduction*	Deduction % of cost
Ovation2 GX	$449,000	$369,400	82%
Ovation3	$474,900	$384,940	81%
Acclaim	$579,900	$447,940	77%
Acclaim-Type S	$599,500	$459,700	77%

These are “typical” deductions for aircraft purchased and put into service by the owner by September 30. And the listed aircraft costs are for illustrative purposes only. Actual costs will vary due to optional equipment.

One more thing you have to remember is the bonus depreciation is available only to new aircraft used primarily in business. To qualify as ‘business use’ it is usually over 50 percent usage.

Every aircraft buyer’s situation is different and I strongly suggest anyone who is considering buying a new or pre-owned airplane talk to an aviation tax advisor or contact me to get all the pertinent information before you sign anything. There’s an incredibly attractive opportunity here – but you have to understand the rules.

For more information on how these tax incentives can be put to work for you, please call me at 800.903.8402.

Fred Ahles is president of Premier Aircraft Sales. Named Diamond and Mooney Dealer of the Year, Premier has offices in Texas, Florida and Georgia along with sales representatives in nine cities throughout the southeastern U.S. For information, visit: www.flypas.com.

Based on general application of provisions of the Recovery Rebates and Economic Stimulus for the American People Act 2008. Application to specific circumstances may very. Consult your tax advisor for more information.

Fred Ahles

2/29/08

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