Can You Write Off a Private Jet? What Changed With the 2025 Tax Law

Before the One Big Beautiful Bill Act, or OBBBA, bonus depreciation was on a scheduled phase-down under the 2017 Tax Cuts and Jobs Act: 80% in 2023, 60% in 2024, 40% in 2025, heading toward 20% in 2026 and elimination in 2027. 

OBBBA, signed into law in July 2025, permanently restored 100% bonus depreciation for qualifying aircraft acquired and placed in service on or after January 20, 2025, replacing that phase-down entirely rather than just pausing it.

In practical terms, a qualifying aircraft placed in service today can be depreciated in full in its first year of business use, rather than spread across the typical 5-year depreciation schedule that otherwise applies to aircraft.

Section 179 allows a business to immediately expense qualifying property up to a set dollar cap, rather than depreciating it over time. For tax years beginning in 2026, the Section 179 limit is $2,560,000, with a phase-out beginning once total qualifying property placed in service exceeds $4,090,000. Both figures are indexed for inflation and adjust annually.
For most aircraft purchases, Section 179 alone will not cover the full acquisition cost, since even a modest light jet is priced well above the cap. Section 179 is typically applied first, up to the limit, with bonus depreciation covering the remaining eligible basis. The two tools work together rather than as alternatives.

Both bonus depreciation and Section 179 require the aircraft be used more than 50% for qualified business purposes to claim the full benefit. Personal or entertainment flying does not qualify, and mixed-use aircraft require careful allocation and documentation between business and personal use. This threshold, and the recordkeeping behind it, is one of the most commonly scrutinized areas in aircraft-related tax filings.

The deduction applies to the tax year in which the aircraft is both acquired and placed in service, meaning delivered and ready for its intended business use, not simply the year a purchase agreement is signed. A buyer who signs a contract in December but doesn't take delivery until January is generally looking at claiming the deduction in the following tax year, not the year of signing.
 

Bonus depreciation and Section 179 apply to aircraft ownership and fractional ownership interests, where a specific asset is being purchased and placed into service. Standard on-demand charter is a different tax situation entirely: charter flights used for legitimate business purposes are generally deductible as an ordinary business travel expense, the same category as a hotel stay or a commercial airfare, rather than as a depreciable asset. 
Clients considering the move from charter to fractional or full ownership are the ones for whom bonus depreciation and Section 179 become directly relevant.

Tax treatment of aircraft ownership, fractional interests, and charter expenses depends on individual circumstances, ownership structure, and current law, which continues to evolve. Nothing on this page constitutes tax, legal, or accounting advice. 

Consult a qualified tax professional or aviation attorney regarding your specific situation before making a decision based on any tax benefit discussed here.

Hogani Jets coordinates each charter through licensed Part 135 operators.

Contact Hogani Jets at charter@hoganijets.com or +1-855-660-0573.

Is a private jet tax deductible?

A jet used for qualifying business purposes can be eligible for 100% bonus depreciation and, in some cases, Section 179 expensing, provided it is used more than 50% for qualified business purposes. Personal or entertainment use is not deductible. Consult a tax professional regarding your specific situation.

What changed with bonus depreciation in 2025?

The One Big Beautiful Bill Act, signed July 2025, permanently restored 100% bonus depreciation for qualifying aircraft acquired and placed in service on or after January 20, 2025, replacing the prior phase-down schedule that would have reduced it to zero by 2027.

What is the Section 179 deduction limit for aircraft?

For tax years beginning in 2026, the Section 179 limit is $2,560,000, with a phase-out beginning once total qualifying property placed in service exceeds $4,090,000. Most full aircraft purchases exceed this cap, so Section 179 is typically combined with bonus depreciation rather than used alone.

What is the business-use requirement for aircraft tax benefits?

The aircraft must be used more than 50% for qualified business purposes to claim full bonus depreciation or Section 179 benefits. Personal or entertainment flying does not qualify, and mixed-use aircraft require documented allocation between business and personal use.

Can I deduct my private jet charter costs?

Charter flights used for legitimate business purposes are generally deductible as an ordinary business travel expense, similar to a hotel stay or commercial airfare, rather than as a depreciable asset. This is a different tax treatment than aircraft ownership.

When does the deduction apply if I buy an aircraft late in the year?

The deduction applies to the tax year the aircraft is both acquired and placed in service, meaning delivered and ready for business use, not the year a purchase agreement is signed. A December signing with January delivery generally falls into the following tax year.

Do fractional ownership interests qualify for the same tax benefits as full ownership?

A fractional ownership interest can qualify for bonus depreciation and, in some cases, Section 179, provided it is purchased for an active trade or business, used more than 50% for qualified business purposes, and properly documented. Consult a tax professional for guidance specific to fractional structures.

Is this page tax advice?

No. This page provides general information only. Tax treatment depends on individual circumstances and current law. Consult a qualified tax professional or aviation attorney before making decisions based on any tax benefit discussed here.