2008 Tax Deductions

[ianders]

I would like to buy a used airplane in 2008 and take advantage of the new tax laws. In the past, I have used my airplane mainly for pleasure, and when It was business related, I just paid for it out of my pocket. I felt this was the best way to keep the IRS off my back. Well, I am trying to figure a way to take advantage of the new 2008 tax laws, but I don't know if I necesserally can. Can I write off my plane for the percentage of the time that it was used for business? Is there anyway that I can legitametly
deduct the use of an airplane if it is for pleasure? What about if I set up a new LLC and let the LLC own the airplane and I just pay the LLC for my use? Any ideas, or do I just need to do as I have in the past and just pay for it out of my pocket?

[MartyTaxLawyer]

Qualifying Property
The new law makes no changes to the general rules for the types of property that are eligible for expensing. Generally, the property must be tangible personal property (like an airplane), which is actively used in the taxpayer’s business and for which a depreciation deduction would be allowed. The property must be used more than 50 percent for business and must be newly purchased property. The existing exception for computer software applies to the enhanced expensing amounts under the new law.
Reminder. If a taxpayer claims the expensing election and subsequently sells the property or stops using it more than 50 percent in its business, the taxpayer may have to recapture part of the tax benefit that was previously claimed. The recapture amount equals the difference between the amount expensed and the amount that the taxpayer would have been able to recapture under the normal rules.
Comment. Businesses that lease equipment rather than purchase continue to be allowed a full writeoff of lease expenses each year, irrespective of the size of the business or dollar value of the leases entered into.