Aircraft is 'listed property' — fall below 50% qualified business use and lose accelerated depreciation with recapture.
IRC §280F treats aircraft as listed property. Requires >50% QUALIFIED business use (charter revenue-generating + business travel by 5%+ owners with primary purpose test) each year. Fall below 50% and (1) revert to ADS straight-line, (2) RECAPTURE prior-year bonus/accelerated depreciation as ordinary income — potentially catastrophic. Bona fide flight logs are non-negotiable: date, purpose, passengers, business connection. Entertainment/commuting is disallowed. Coordinate with §274 substantiation.
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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.
TCJA killed §1031 for personal property, but aircraft-to-aircraft business-use swaps still deferred pre-2018 gains via reverse structures.
Lease your aircraft to a Part 135 charter operator; charter revenue + business-use documentation supports depreciation.
Charter yacht through certified operator; documented business use enables §168(k) bonus depreciation + Augusta 14-day rule.