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Author: Pat Redmond

In the hours and days immediately following the tragic attacks
on America of 9/11, there was much speculation about the effects
on the general aviation industry. While the events of September
11, 2001 have had a significant impact on the economy as a
whole, sales of personal aircraft in Michigan have experienced a
surprising boost. Certainly, the convenience of personal
transportation has played a major role in this increase as
airport lines and security have become more time consuming. The
reduction of flights resulting from the airline cost-cutting
have limited flexibility for the business person and affected
the productivity of companies relying on commercial
transportation. These factors alone can't explain surge of
people joining the flying community for more than just pleasure.
Rebates, low and 0% interest rates, training allowances, and
yes, even the IRS played a role in creating an environment that
has introduced more people to the benefits of aircraft ownership
and had an effect similar to that seen after the passage of the
General Aviation Revitalization Act of 1995.

The IRS is here to help you? Well, believe it or not, a new tax
law passed earlier this year represents a renewed attempt by our
nation's leaders to jumpstart the economic recovery. The bill
applies to new airplanes acquired after September 10, 2001, and
before September 11, 2004, and provides tax savings from
economic stimulus provisions included in the Internal Revenue
Code designed to encourage investment in capital assets. Visit
your local airport and you're sure to see plenty of forty and
fifty year old aircraft operating for both business and
pleasure. Even prior to the new tax law, Congress recognized
that capital investment is an important part of our economy, and
therefore allowed a five year depreciation of these assets. To
further encourage investments, they do not require the
depreciation to be spread evenly over the five years, but
through a concept know as "double declining balance," greatly
accelerate depreciation during the first two years of ownership.
Now with the additional incentives of 30% bonus depreciation on
new airplanes, tax deferral opportunities are greatly expanded.

So how might a business person benefit from these new changes?
First of all, the impact of these depreciation changes greatly
reduce net cash investment for the purchase of a new airplane.
Specifically, an operator in the 40% tax bracket who can
successfully write off his aircraft ownership expense may have
no cash investment in the airplane during the first four years.
Additionally, when properly structured, many taxpayers have an
opportunity to convert personal use into business use. The
Internal revenue code provides an optional method of taxing an
individual for personal use of an aircraft which many times
amounts to less than 10% of the actual deductions flowing from
the investment. Consult your tax professional prior to
purchasing your new airplane or ask your Aircraft Dealer for the
name of an Aviation Tax Specialist to set up your purchasing
entity.

And you say you're not a pilot? Local aircraft dealers like
Suburban Aviation, Inc. in Lambertville, Michigan will actually
teach you to fly your new airplane and even reimburse your
expenses when you purchase a new Cessna airplane from them. Most
of today's pilots learned to fly in a Cessna airplane and the
majority of these pilots continue to experience the freedom and
flexibility that flight offers in one of Cessna's many single
engine models. For 75 years, Cessna has been the leader in
general aviation aircraft providing a safe and reliable
alternative to commercial airlines and the automobile.

So if your business can benefit from improved efficiency and tax
savings, why not consider a company airplane? There are few tax
saving opportunities as effective as fully depreciating an
aircraft on a five year accelerated basis, and with today's
interest rate environment, a well-structured transaction often
results in little or no after tax cash flow holding costs during
the early years of ownership. Of course, arriving at your
meeting on time and with all your luggage can also be pretty
convincing!

About the author:
Pat Redmond, helps business owners who are tired of long lines
and baggage claims, fly their way to freedom! Enjoy dinner with
your family tonight! To learn more about the General Aviation
Business, sign up for more FREE tips like these, visit her site
at http://www.airplanenoise.com

Article from www.goarticles.com

nice artical but it kinda to long.
its made for more seriose poeple like bussnes men.
oh yah ill ask my uncle and that science guy to join if you dont mind:cool:

Yea I know it's a bit too long, but you never know, someone might benefit. :D
And yes ask everyone to join! Everyone! :D