Updated . Educational only — not tax, legal, or lending advice. Confirm figures with your CPA, the state revenue department, and a lender before you close.
Two Different Deductions, One Business-Use Test
Section 179 and bonus depreciation both accelerate cost recovery. They are not the same rule, and neither one is a check from the lender. Dollar limits for 2026, the acquisition-date test, and the 40/60 election are on the 2026 planning page. This page is the mechanism.
What each one does
Section 179 lets a taxpayer elect to expense the cost of qualifying property placed in service, up to a statutory maximum, phased out as total qualifying purchases get large, and limited to taxable business income. Bonus depreciation is an additional first-year deduction for qualified property. Under IRS Notice 2026-11 it is 100% for qualified property acquired after January 19, 2025. A taxpayer may elect 40% instead, or 60% for certain longer-production property including certain aircraft, for the first tax year ending after that date.
The usual ordering is Section 179 first, then bonus depreciation on the remaining basis, then regular MACRS if anything is left. Your CPA chooses the order that fits income. There is a taxable-income limit on Section 179. There is not the same annual dollar cap on bonus depreciation.
Business use
Listed-property rules still matter. The aircraft generally needs more than 50% qualified business use, documented with logs, or the accelerated deductions fall away and previously taken depreciation can be recaptured. Personal use, entertainment disallowance, and related-party flights are why aviation CPAs exist. A spreadsheet of “planned business use” is not a log.
What this does not do
It does not reduce state sales tax. It does not make the loan smaller. It can reduce federal income tax in the year the aircraft is placed in service, which improves after-tax cash if you have the income to absorb the deduction. States do not all conform. Model the loan payment as if the deduction were delayed, then treat the tax benefit as a bonus.
Questions buyers actually ask
Can I take both?
Often yes, subject to the ordering rules and the Section 179 income limit. That is a CPA question, not a lender question.
What if business use drops later?
Recapture can apply. The deduction is not free money if the use changes. Keep logs for as long as your CPA tells you to.