Year End Aircraft Purchases and US Bonus Depreciation
What buyers should consider before 31 December 2026
Aviator Aircraft Sales | News and market insight | 26 October 2026
As 2026 draws towards its close, prospective aircraft owners have an important opportunity to review their acquisition plans. The restoration of 100% U.S. bonus depreciation has strengthened the financial case for qualifying business aircraft purchases, bringing the timing of an acquisition into sharper focus.
At Aviator Aircraft Sales, our guidance is to consider tax planning alongside the fundamentals of ownership: selecting the right aircraft, agreeing a defensible purchase price and establishing a realistic path to delivery. A successful year-end acquisition needs all three.
What has changed for aircraft buyers
Legislation enacted in July 2025 restored 100% bonus depreciation for eligible property acquired and placed in service after 19 January 2025. Qualifying new and pre-owned business aircraft can benefit, subject to the acquisition and use requirements. The IRS issued further guidance in January 2026.
For eligible U.S. taxpayers, this can allow the qualifying depreciable cost to be deducted in the year the aircraft enters service, accelerating deductions that would otherwise be spread over several years. The benefit is a deduction against taxable income; the actual tax saving depends on the purchaser’s circumstances and applicable limitations.
There is currently no scheduled expiry or annual reduction in the restored 100% rate. Buyers therefore have room to make a considered decision. The reason to complete before year-end is to seek a deduction in the relevant tax year, rather than to beat an imminent withdrawal of the relief.
Why the delivery timetable matters
For a calendar-year taxpayer seeking a 2026 deduction, the aircraft must be placed in service by 31 December 2026. Signing a purchase agreement, paying a deposit or transferring ownership does not, by itself, establish this. The aircraft must be ready and available for its intended business function.
That makes the transaction timetable a central part of the buying decision. Pre-purchase inspections, resolution of technical findings, financing, insurance, registration and operational arrangements all need to be coordinated. A buyer’s tax adviser should confirm the evidence needed to support the intended service date.
We recommend working backwards from that date, allowing time for inspection findings and administrative delays. A late-December closing with unresolved maintenance or delivery requirements leaves little room to protect the buyer’s objectives.
Assessing value in the year-end market
Our view is that buyers with a firm year-end objective should give particular weight to an aircraft’s readiness for delivery. Complete records, a clear maintenance position, a cooperative seller and an achievable inspection schedule can be as relevant as the advertised price.
Two aircraft of the same model and year can present very different ownership propositions. Engine programme coverage, upcoming inspections, operating history, cabin specification and required upgrades all influence the total investment. An attractive asking price deserves careful scrutiny if significant expenditure or extended downtime will follow completion.
The same discipline applies to negotiations. We advise buyers to assess comparable aircraft and the likely cost of bringing each option into their intended operation. A potential tax deduction should sit within that analysis, with the purchase making commercial sense on its own merits.
Business use must support the deduction
Eligibility depends on how the aircraft is owned and used. Aircraft generally need more than 50% qualified business use, with additional aircraft-specific rules, including a separate 25% test. Personal and entertainment use can restrict deductions, and detailed records must substantiate flight purposes and passenger use.
These obligations continue beyond delivery. A later failure to meet the business-use tests can require earlier depreciation to be brought back into taxable income through recapture.
We recommend involving an aviation-experienced U.S. tax adviser before committing to a purchase. The ownership structure, intended operations and ability to use the deduction should be reviewed together, with federal, state and cross-border considerations addressed as applicable.
Considering aircraft located in Europe
For U.S. buyers, an international search can widen the choice of aircraft. A European-based option should be assessed against the full cost and timetable of delivery into the buyer’s intended operation.
Depending on the transaction, that assessment may include export documentation, deregistration, U.S. registration and airworthiness requirements, customs arrangements and ferry planning. Required modifications or maintenance should be identified early. Tax eligibility needs separate confirmation from the purchaser’s advisers.
At Aviator, we approach these requirements as part of the acquisition from the outset. Identifying a suitable aircraft is the beginning; the work continues through technical review, negotiation, acceptance and delivery.
Planning a considered purchase
For buyers already considering an acquisition, the remaining weeks of 2026 are a useful window to establish what can realistically be achieved. Early preparation gives the buyer time to compare opportunities, complete due diligence and align the transaction with their operational and financial objectives.
With senior team members in the UK, Spain and Denmark, Aviator Aircraft Sales provides direct senior oversight throughout each acquisition. We work alongside our clients’ legal, tax and technical advisers to coordinate the process from initial search to closing.
To discuss a year-end aircraft purchase or an acquisition planned for 2027, contact Aviator Aircraft Sales for a confidential conversation about your requirements.
Published 26 October 2026. This article provides general market commentary, not tax or legal advice. Eligibility and the value of any deduction depend on individual circumstances. Obtain independent U.S. aviation tax advice before relying on any anticipated benefit.