In the United States, depreciation is a method of tax deferral allowed by the Internal Revenue Service to enable businesses to accelerate deductions when purchasing high-priced capital assets, such as production machinery, highway vehicles, ships or aircraft used in business contexts. Its overriding intention is to encourage — or at least facilitate — the purchase of capital equipment, as this is seen as a stimulus to the larger economy.
“Justifying business aircraft can be a complex endeavor, but it should not be feared,” said David Almy, the driver behind the NBAA’s Travel$ense and now part of the General Aero Co. consultancy.
