TCJA killed §1031 for personal property, but aircraft-to-aircraft business-use swaps still deferred pre-2018 gains via reverse structures.
Post-TCJA §1031 applies ONLY to real property, ending aircraft-to-aircraft like-kind exchanges. HOWEVER, pre-2018 deferred gains on rolled-over aircraft still exist and must be tracked. Modern replacement: rely on §168(k) bonus + §179 on the replacement aircraft to offset sale-of-old gain in the SAME tax year. Time the sale + replacement in one year to trigger enough new depreciation to zero-out the prior-year recapture. Requires business-use of both aircraft.
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Own a 1/16 to 1/2 fractional share; deduct >50% business use via §168(k) bonus + §179 up to full share cost.
Lease your aircraft to a Part 135 charter operator; charter revenue + business-use documentation supports depreciation.
Aircraft is 'listed property' — fall below 50% qualified business use and lose accelerated depreciation with recapture.
Charter yacht through certified operator; documented business use enables §168(k) bonus depreciation + Augusta 14-day rule.