IRS APPROVED PLANE DONATION PROGRAM

Many business jets have recently been depreciating faster than ever before. Some models whose value historically declined an average of 4 percent per year experienced losses in excess of 20 percent in 2015. Aircraft Value Reference Guide (Vref), for example, reported that during a three-month period toward the end of last year, the value of the average Falcon 7X sank between $1.8 and $2.7 million, with other models such as the Gulfstream G550 experiencing similar declines. Sellers of such jets face pressure to complete a transaction sooner rather than later, which further accelerates depreciation rates.No matter how old they are, though, jets never seem to run out of value altogether. Instead, they often hit a floor, a kind of depreciation-free zone, where loss in value slows or stops for a time. Vref, for example, reports that in the same three-month period, Gulfstream GIIs, Dassault Falcon 10s, Citation Bravos, and Learjet 55s did not decline in value at all.In part, this apparent stabilization may simply reflect a lack of sales. Buyers aren’t plentiful for a 32-year-old business jet that needs an eight-year inspection, major avionics upgrades, and engine overhauls. A potential purchaser might conclude that the cost to render the aircraft serviceable exceeds its ostensible value. The owner who wants to get rid of an airplane that’s hard to sell, then, has limited options. A business jet, after all, isn’t like a car that you can push out to rust in a field by the barn or have hauled away by a junk-metal dealer’s tow truck.When an aircraft becomes too expensive to operate or too difficult to sell, a typical solution is to “part it out”—to tear it down for parts. This is a flourishing industry served by a trade organization called the Aircraft Fleet Recycling Association, which offers accreditations in airplane disassembly and recycling. But depending on the model, the market for its parts may already be saturated. As a result, owners seeking to get rid of older jets are increasingly thinking about giving them to a charityThere’s no lack of willing recipients, but Giving Center will be the easiest and fasted way to rid yourself of the headache. They are an IRS Approved 501(c)3 nonprofit charity, so you don’t have to worry about receiving your appropriate tax documents and paperwork! Your donation is tax deductible! For more information on how to donate please visit their website for plane donations here: aircraftdonation.org.

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