For business owners, depreciation can be one of the most valuable aspects of aircraft ownership — but it's rule-bound and easy to get wrong. This page explains how aircraft depreciation works in general terms: recovery periods, the business-use requirement, and how bonus depreciation and Section 179 fit in. For the current 2026 rules, see our bonus depreciation & Section 179 guide. This is not tax advice — work with a qualified aviation CPA.
Key takeaways
- Depreciation deducts the cost of a business-use aircraft over time (or, with bonus/179, faster).
- Business use above 50% is the key threshold for the most favorable treatment.
- MACRS sets standard recovery periods when accelerated methods don't apply.
- Depreciation recapture can apply when you sell — plan for it.
The Basics: MACRS & Recovery Periods
Depreciation lets a business deduct the cost of an aircraft used for business over its useful life. Under the Modified Accelerated Cost Recovery System (MACRS), business aircraft generally fall into recovery periods (commonly five years for many non-commercial business aircraft, longer for certain commercial operations), with the deduction spread across those years. MACRS is the default framework; bonus depreciation and Section 179 (below) can accelerate it dramatically. The IRS covers depreciation of business property in Publication 946.
The Business-Use Requirement
The favorable treatment hinges on qualified business use. Generally, the aircraft must be used more than 50% for a qualified business purpose, and the deduction is scaled to the business-use percentage — personal use is disallowed. Careful record-keeping of flights (business vs. personal) is essential, because the IRS looks closely at aircraft. How the aircraft is owned (personally vs. through an entity) and operated (Part 91 vs. 135) also affects the analysis. See our LLC financing guide.
Bonus Depreciation, Section 179 & Recapture
Bonus depreciation and Section 179 let qualifying businesses deduct much or all of the cost in the first year rather than over the MACRS period. Under the 2025 One Big Beautiful Bill Act, 100% bonus depreciation was made permanent for property placed in service after January 19, 2025 — a significant benefit for qualifying buyers. Be aware of depreciation recapture: if you later sell the aircraft or business use drops, some of the deduction may be recaptured as income. Our 2026 guide covers the current rules; always confirm with a CPA.
Rates, terms, and figures in this article are illustrative examples for the 2026 market and are not offers of credit. Jaken Aviation is a licensed aircraft financing brokerage — a division of Jaken Finance Group — and does not make loan decisions. All financing is subject to lender approval. Tax information is general and not a substitute for advice from a qualified CPA.
Frequently Asked Questions
Can I depreciate an aircraft I use for business?
Generally yes, if it's used more than 50% for a qualified business purpose, with the deduction scaled to business-use percentage. Personal use is disallowed. Consult a qualified aviation CPA.
What is the business-use requirement?
Broadly, more than 50% qualified business use for the most favorable treatment, with careful record-keeping of business vs. personal flights. How the aircraft is owned and operated also matters.
What is depreciation recapture?
If you sell the aircraft or business use falls, some previously-claimed depreciation may be recaptured as taxable income. Plan for it with your CPA before you buy or sell.
Is this the same as bonus depreciation?
Bonus depreciation and Section 179 are accelerated methods within the depreciation framework, letting you deduct much of the cost up front. See our dedicated 2026 bonus depreciation guide.
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