Where an aircraft is used for
business purposes, the aircraft can generally be depreciated for
tax purposes using
the "special depreciation allowance" (SDA), the "modified accelerated cost recovery
system" (MACRS) or the "alternate
depreciation system" (ADS). The SDA is available for new
aircraft and parts. The use of the
ADS method may be required where the aircraft is:
* Not used more than 50% for business purposes
(special rules apply to aircraft).
* Used "predominately" outside of the
United States (special rules apply to U.S.
The table below shows the
percentage of the aircraft cost that is
deductible each year The rates below apply to
noncommercial aircraft. Different rates may apply
where the aircraft is used primarily to transport
persons or property for hire.