Owning a private jet is the ultimate status symbol—especially in Los Angeles, where time, privacy, and global mobility are essential. But beyond convenience and prestige, there’s another compelling reason the wealthy choose to own: tax advantages.
For ultra-high-net-worth individuals who travel for business, investing in a private jet can open the door to substantial tax write-offs. Used strategically and legally, these deductions can help offset income, reduce tax exposure, and provide major financial advantages.
But let’s be 100% clear: I am not a CPA, tax advisor, or attorney, and this post is not legal, tax, or financial advice. Everything in this article is for informational purposes only. You must consult a qualified CPA or tax attorney before making any decisions regarding aircraft purchases, ownership structures, or deductions.
✈️ The Big Picture: Can You Deduct a Private Jet?
Yes—if used for qualifying business purposes, the IRS allows individuals and businesses to deduct a significant portion (sometimes up to 100%) of the jet’s purchase price, plus operating expenses.
Thanks to the Tax Cuts and Jobs Act (TCJA), certain aircraft purchases became eligible for 100% bonus depreciation, meaning you may be able to deduct the full cost in the year you purchase and place the aircraft into service.
💼 Who Qualifies for the Deduction?
You must prove that the jet is primarily used for business purposes, such as:
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Traveling to meetings with clients or investors
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Visiting remote business sites or properties
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Attending conferences or trade shows
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Transporting employees or executives
Even if you're flying between your Los Angeles estate and a second home in Aspen or Miami, if it's tied to real estate development, business planning, or operational needs, a portion of that travel may qualify as a business expense—if documented properly.
The IRS generally requires more than 50% business use to claim significant deductions.
💸 Tax Benefits at a Glance
Here are the most commonly used provisions:
✅ Bonus Depreciation (Section 168(k))
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Allows 100% first-year depreciation for new and used aircraft purchased for business use.
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Applies only if the jet is placed in service the same year it’s purchased.
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Available through 2026 (80% limit in 2025).
✅ Section 179 Deduction
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Can be used in conjunction with bonus depreciation, though it has an annual cap.
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2025 limit: $1.22 million, phasing out at $3.05 million.
✅ Operating Expense Deductions
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Fuel, insurance, crew salaries, maintenance, hangar fees, and depreciation on upgrades may be deductible when related to business use.
🧾 Sample Tax Strategy: Luxury Real Estate Developer in L.A.
Imagine you’re a developer with offices in Beverly Hills and projects across the country. You purchase a $15 million Gulfstream G500 to travel between Los Angeles, Palm Beach, New York, and Europe.
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Business Use: 70%
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Jet Placed in Service in 2025
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Bonus Depreciation Claimed: 80% of $15M = $12M deduction
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Annual Operating Costs: ~$1.5M
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Estimated Year-One Tax Savings: Over $4.4 million (assuming 37% tax bracket)
📌 Again, this is a simplified example. Actual deductibility will depend on your specific tax situation, documentation, and compliance with IRS guidelines. Speak to a professional.
✈️ The Fine Print
❌ Mixed-Use Rule
If your jet is used for both business and personal travel, only the business portion is deductible. Meticulous flight logs are essential.
❌ Entertainment Travel
Trips involving entertainment—such as flying clients to a concert or sporting event—are not deductible under post-2017 rules.
❌ Documentation is Everything
Expect the IRS to request detailed records. Incomplete logs or vague “business purposes” won’t hold up in an audit.
🏡 Real Estate + Private Jets = Strategic Luxury
Los Angeles is uniquely positioned for jet owners. Many estate buyers also travel frequently for real estate deals, property inspections, or family office operations. Living near private airports such as Van Nuys (VNY), Santa Monica (SMO), or LAX Private Suites enhances the efficiency of jet ownership.
Explore homes in jet-friendly neighborhoods:
🧠 Final Thoughts: Know Before You Fly
There’s no doubt that owning a jet can elevate your lifestyle. But with the right planning and professional guidance, it can also become a strategic financial asset.
Key takeaways:
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Deductions can be powerful but require accuracy and business alignment.
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Documentation, structure, and usage determine deductibility.
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Surround yourself with an expert team—aviation consultants, CPAs, and attorneys.
🔗 Live Like You Fly
At Pezzini Luxury Homes, we work with clients whose lifestyles extend far beyond L.A.—from Aspen to Monaco, Dubai to The Hamptons. If you're ready to align your real estate with your aviation goals, explore our collection of luxury homes near the top private airports in Southern California.
Disclaimer: I am not a CPA or attorney. This blog is provided for informational purposes only and does not constitute legal, financial, or tax advice. Please consult a qualified CPA, tax advisor, or attorney before making decisions related to private jet ownership, deductions, or tax strategy.
