- Private jets and planes come with luxurious amenities – and high price tags.
- The Republicans’ new tax bill included a change that allows rich people to purchase a private jet and write it off in full on their tax return.
- President Donald Trump has been called “the mascot of private jets.”
Buying a private jet comes with a hefty price tag – but the Republicans’ new tax bill has made the extravagant purchase more appealing to some.
Private jet buyers can now write off the full amount of their new plane’s cost on their tax return, which applies to both new and pre-owned aircraft. That’s due to a policy change within the Trump Administration’s 2017 Tax Cuts and Jobs Act that updated the US tax code to allow 100% bonus depreciation for items such as aircraft.
For the mega-wealthy of the world, this deduction accounts for much, if not all, of their millions in tax liability – meaning buying a new private jet could practically wipe out their tax bill in the year they buy it.
The new tax bill also addressed a technical clarification that now prevents operators of private charter flights from being charged with a tax that was originally designed for commercial flights.
President Trump – who has long owned his own plane – might also be making private jet ownership more appealing. In an interview with The New York Times, Steve Varsano, who owns The Jet Business – an aviation showroom and retailer that sells private corporate aircraft – said: “[Trump] is changing the optics of private aviation. He’s the mascot of private jets.”
The public may not view private jets quite so positively, however. Health and human services secretary Tom Price resigned in September after a bipartisan outrage for his use of private chartered flights to conduct government business.
The world’s richest people already spend $US23 billion a year on private aviation, according to data from Wealth-X and Camper and Nicholson featured in a recent report from Coldwell Banker, but it’s possible that number will increase.
“This is a very generous depreciation offer and the market has been on the cusp of a turnaround for some time. Maybe this serves as one of the precipitating factors,” Richard Aboulafia, vice president and aviation industry analyst at Teal Group, recently told Business Insider’s Benjamin Zhang.
Below, a look at 7 private jets and planes currently on the market. If you’re tempted to make a purchase for the tax deduction, make sure to check with an accountant first.
The Boeing Business Jet
Asking price: $US34,950,000
Passenger occupancy: 18
ThisBoeing Business Jet can fit up to 18 passengers. The private plane features two, four-seat dining tables, a private bedroom area with a bed, an entertainment center, and three-seater couch.
The Gulf Stream G550
Asking price: $US33,750,000
Passenger occupancy: 19
The interior of the Gulf Stream G550 has enhanced soundproofing for an extra queit ride, an espresso maker on-board, and multiple HD widescreen LCD monitors throughout the cabin.
Bombardier Global Express XRS
Asking price: $US18,950,000
Passenger occupancy: 17
The Bombardier Global Express XRS provides its passengers with an espresso maker, a high temperature oven, open closet space to store toiletries and hang clothes, and various tables throughout the cabin to spread out.
Embraer Lineage 1000E
Price: Best offer (listing price in 2015 was $US53 million)
Passenger occupancy: 19
Multiple 24-inch LCD widescreen monitors are scattered throughout this Embraer Lineage 1000E cabin, along with power outlets, and controls to the in-flight entertainment system. One wardrobe closet, two credenzas, and vanity mirror in the bathroom along with the sink and countertop will have passengers feeling right at home. The spacious Lineage 1000E’s design is based on the popular Embraer E190 regional airliner.
Passenger occupancy: 9
Bombardier’s Learjet 75 has access to high-speed internet, six personal touch-screen monitors, a sound-insulating sliding-door to keep the cabin queit, and stowable tables at each seat.
Passenger occupancy: Up to 7 (five adults, two children)
Cirrus’ Vision Jet is a jet designed to be flown by its owner. With reclining leather seats and extended leg room, this jet offers panoramic views to its passengers with strategically placed windows.
ICON Aircraft, A5
Price: Between $US269,000 and $US389,000.
Passenger occupancy: 2 (including pilot)
If pilots and their passeners want to fly simply for the joy of flying – the ICON Aircraft’s A5 is the best option. While the A5 isn’t a jet, it’s an aircraft that aims to bring the sport of flying to a larger audience. ICON’s Flight Centres – located in Tampa, Flordia and Vacaville, California – have trained multiple pilots.
Business Insider Emails & Alerts
Site highlights each day to your inbox.