THE BEST AIRCRAFT, THE BEST VALUE, THE BEST TIME.
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GUIDE TO GAINING MORE VALUE FROM BUSINESS AVIATION WITH HAWKER BEECHCRAFT.
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Disclosure Under IRS Circular 230: To ensure compliance with requirements recently imposed by the IRS, we inform you that any tax advice contained in this communication,
including any attachments, was not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax-related penalties or promoting, marketing or
recommending to another party any tax-related matters addressed herein.
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tax depreciation Thanks to the newly passed tax bill, there has never been a better time to realize huge savings on aircraft purchases and upgrades.
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or businesses, the decision to buy an aircraft can be complicated, influenced by economic trends, changes in accounting rules and the ever-evolving dynamics of markets. But in 2011—and only in 2011—the decision has become much easier. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010* signed into law in December extends the bonus depreciation allowance granted
under the 2010 Small Business Jobs Act for another year—and increases the amount from 50 to 100 percent. This means a business can write off the entire cost of an aircraft purchased and delivered in 2011 in the 2011 tax year, instead of depreciating it over several years. The first-year outlay for an aircraft is effectively and substantially reduced, making it easier for small businesses to
capitalize on the tremendous income opportunities that arise when executives, sales personnel and technicians are no longer bound by the limitations of commercial airline travel. And for current owners of Hawker Beechcraft products, the 2011 bonus depreciation allowance is also available on upgrades made to their aircraft through Hawker Beechcraft Services.
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Hawker
performance, comfort and reliability: now a 100% write-off. Combining advanced technology with the incomparable comfort and productivity of the Hawker cabin, Hawker jets are already an outstanding investment for corporations with a vision. Thanks to the 100-percent bonus depreciation allowed for purchases of aircraft delivered during 2011, Hawker jets have become even more effective and affordable business tools. Performance made possible through advanced technology allows executives to visit multiple cities in a single day with none of the uncertainties of commercial airline travel—and without having to spend their lives running through airports.
4000 Composite technology creates the world’s most advanced super-midsize intercontinental business jet
900XP Class-leading range, superior comfort and the versatility of unimproved airfield capability
750 Superb value and carrying capacity with a cabin 30% larger than most midsize jets
do you realize the potential for savings? Typical jet purchase cost ✓ 1st-year depreciation ✓ Corporate tax deduction for 1st year (@35%) ✓ Effective initial acquisition cost
$15 M TYPICAL DEPRECIATION
$15 M 100% BONUS DEPRECIATION
$3 M
$15 M
$1.05 M
$5.25 M
$13.95 M
$9.75 M
For illustrative purposes only. Consult your tax advisor.
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BEECHCRAFT
Proven, reliable and efficient business tools: now more practical than ever. Countless businesses small and large benefit from having a Beechcraft King Air, Baron or Bonanza at their disposal. Clients in remote locations become easily accessible. Projects in far-flung locales become practical—and profitable. With the 100-percent bonus depreciation available on purchases of aircraft delivered during 2011, the acquisition cost of these extraordinary business tools is now much easier for businesses to handle. There has never been a better time to expand your business opportunities with a new Beechcraft.
King Air 350i The world’s most technologically sophisticated, capable, spacious and efficient business turboprop
King Air 250 Composite technology, legendary comfort, and outstanding short-runway capability
King Air C90GTx The practical, comfortable and affordable option for regional transportation—now with twice the payload capacity
do you realize the potential for savings? $5 M
Typical turboprop purchase cost
TYPICAL DEPRECIATION
✓ 1st-year depreciation ✓ Corporate tax deduction for 1st year (@35%) ✓ Effective initial acquisition cost
$5 M 100% BONUS DEPRECIATION
$1 M
$5 M
$.35 M
$1.75 M
$4.65 M
$3.25 M
For illustrative purposes only. Consult your tax advisor.
Baron G58 The safety and comfort of a six-seat twin, updated with advanced glass-cockpit avionics
Bonanza G36 Classic reliability, state-of-the-art technology and six-seat versatility
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UPGRADES
let the u.s. government share the bill when you enhance the value of the aircraft you already own. The same 100-percent bonus depreciation allowance available on new aircraft purchased in 2011 is also available when you enhance the capability of your current Hawker Beechcraft aircraft. Working with the experts at Hawker Beechcraft Services, you can add the latest aerodynamic technology, upgrade avionics, improve the interior—and do it all at a first-year cost that’s much easier to justify to your CEO. Beechcraft Bonanza Xtra, King Air Transformation, and the Hawker 800XPr programs all add state-of-the-art components designed to factory-new standards that increase safety, performance and resale value.
beechcraft
KING AIR
HAWKER
bonanza X t r a
TRANSFORMATION
800XP r
do you realize the potential for savings? Typical 800XPr upgrade cost
$2.5 M TYPICAL DEPRECIATION
✓ 1st-year depreciation ✓ Corporate tax deduction for 1st year (@35%) ✓ Effective initial upgrade cost
$2.5 M 100% BONUS DEPRECIATION
$.5 M
$2.5 M
$.175M
$.875 M
$2.325M
$1.625 M
For illustrative purposes only. Consult your tax advisor.
Request a proposal and learn more from the people who know your aircraft best. Visit HawkerBeechcraft.com/Customer_Support
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KNOW MORE To be eligible for the 100-percent bonus depreciation allowed under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, an aircraft must enter service by the end of 2011. Upgrades on which bonus depreciation is taken must be completed by the end of 2011. The law is retroactive for aircraft purchased after Sept. 8, 2010. On Jan. 1, 2012, the bonus depreciation allowance drops to 50 percent, and it is slated to end on Jan. 1, 2013. To qualify for bonus depreciation, new aircraft must be used in noncommercial aviation and must have a production period exceeding four months and a cost exceeding $200,000. The aircraft must be used primarily for business purposes. The purchaser must have put down a deposit of the lesser of 10 percent or $100,000. More restrictions may apply. Consult an aviation tax professional for full details.
INDEPENDENT RESOURCES finance.senate.gov/legislation www.nbaa.org/news/pr/2010/20101217-096.php www.aviationtaxconsultants.com www.advocatetax.com
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OPPORTUNITY TODAY
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316.676.0800 or visit hawkerbeechcraft.com
©2011 Hawker Beechcraf t Corporation. All rights reserved. Hawker and Beechcraf t are trademarks of Hawker Beechcraf t Corporation.
Hawker Beechcraft Corporation 10511 E. Central Wichita, Kansas 67206 USA +1.316.676.5034 +1.316.676.6614 fax www.hawkerbeechcraft.com