Buried within President Trump’s nearly 900-page One Big Beautiful Bill Act signed into law on July 4 is a boon for the private jet lobby: Executives who use private jets for business can now write off the full cost of a new or used aircraft more quickly, thanks to reviving a 2017 tax provision that speeds up write-offs for planes in service as of January 2025.
Putting aside the fact that private jets emit 10 times the pollutants of commercial planes and contribute just 2% of taxes that make up the Federal Aviation Administration, the return of “100% bonus depreciation” for private jets means that major companies with the bucks to buy one can now deduct that cool $50M+ capital purchase from their taxes within the first year of flying it, rather than spread out the deduction over the jet’s useful life.
With taxpayers subsidizing these high-flying write-offs, shouldn’t we be able to buy a private jet too? If you’re spending more than 200 hours in the air each year (and who isn’t these days?), here’s your road map to aircraft ownership.
How much does a private jet cost?
The cost of a taxpayer-subsidized jet can range anywhere from a few hundred thousand dollars to well over $100 million. How much you’ll pay comes down to the type of aircraft you like, how far you need it to go, your desired bells and whistles and whether it’s used or new.
Sure, it doesn’t need to be the president’s plane — though, what if it were? The most expensive private jet in the world, Air Force One is estimated to have cost taxpayers $5.3 billion (including a nearly $4B two-year contract with Boeing). Pre-owned jets are much more affordable, at under $400,000 all the way up to $1 million.
You might have a little trouble finding a solid price tag, however: Many private jet sellers tease upfront costs but require your most polite offer before they’ll work with you. It’s among the reasons first-time buyers work with aircraft brokers (yes, that’s a job) to navigate jet purchases. Brokers help you decide on the type of jet to buy and avoid buying damaged planes — kinda important.
I’m ready to buy a jet — now, where do I start?
Not able to ask your friends or fellow CEOs for recommendations? A search of aviation resource Global Air reveals that private jet brokers abound, with more than 30 negotiating in the state of Florida alone. You’ll want an experienced expert who’s worked extensively with the type of aircraft you’re eyeing, as well as robust references, before you agree to work with them.
Another must? Hiring an aviation lawyer to help navigate the legal side of buying your new wings, negotiate the contract and make sure you’re meeting FAA and insurance requirements. They’ll also take on any disputes that arise during the sale.
An attorney versed in tax law might also streamline that new million- or billion-dollar write-off you deserve. (After all, you’ve earned it!)
How much are we talking about to maintain my new jet?
Like all absolutely necessary impulse buys, owning your own Gulfstream comes with ongoing expenses you’ll need a budget for. Starters are annual inspections the FAA requires every year or every 100 hours, which can cost you up to $100,000 for basics. The larger the plane, the more you’ll pay.
Next are routine repairs — not an area you’ll want to skimp on. Checks, troubleshooting and expertise can add up to $500,000 or more a year.
Counting on my fingers, that’s a lot of dough. But wait, there’s more!
Sky-high insurance
No, your State Farm agent won’t help you. Annual aviation insurance typically costs from 1% to 3% of your private jet’s overall value. That’s between $10,000 and $30,000 a year for a $10 million ride.
You’ll want both liability and hull coverage — liability to cover damage to property or people, and hull to cover damage to your aircraft.
The world’s most expensive garage
You’ve got to park that bad boy somewhere, and hangar rental fees can range from $11,000 to $200,000 a year. As with most real estate, it’s location, location, location. And while you can park your jet outside, you’ll want to weigh higher maintenance expenses resulting from exposure to the elements.
Tempted to buy your own hangar? It might save you money in the long term, though upfront costs will run you $60 to $120 each square foot — let’s call it $1 million in total.
Fuel bills that rival small-town budgets
Jet fuel prices were between $2 and $3 per gallon last year, according to the Argus U.S. Jet Fuel Index — though they can fluctuate significantly, depending on the market and where you’re topping up. How much you need comes down to how often you travel, how far you go and the size of your plane, though budget to burn anywhere from 150 gallons to 550 gallons of fuel each flight hour.
Your personal sky crew
Unless you’re comfortable in the pilot’s seat, you’ll need to bring along somebody to fly your plane. A single pilot carries a price tag of $85,000 to more than $300,000 a year. Many private jet owners prefer to work with two pilots, pushing your costs to more than $170,000 annually. And what about cabin crew? That’s from $45,000 to $75,000 for each attendant.
‘Touch down’ costs
All this, and you want a place to land? Think of airports like fancy hotels: Everything costs extra. There are landing fees, overnight parking, catering, de-icing and tie-down fees, if you aren’t using a hangar. Many airports outsource to companies called fixed base operators that tack on their own charges. Pro tip: Smaller airfields are cheaper than major hubs. You’re welcome.
… And we’re back to taxes
Isn’t this where we started? Thanks to this year’s OBBB, you can more immediately deduct up to $2.5 million in jet expenses — double previous limits — with phaseouts that keep you in the party for up to $6.5 million. That’s when Uncle Sam finally says, “You’re on your own, kid.”
Bottom line for the rest of us
Of course, only some 0.0001% of Americans can afford to buy a private jet — roughly the same number who keep $50 million as pocket change.
Still, the average person can learn a little something from the way the ultra-wealthy benefit from sky-high tax breaks:
Take every write-off you can. You might not be able to write off a Gulfstream, but you can leverage legitimate personal and business deductions — from property taxes to catch-up contributions, as well as computers, business equipment and travel, depending on your line of work.
Focus on assets that appreciate. The rich didn’t get rich by buying assets that lose value over time. (Hello, private jets!) They accumulated wealth through smart investing, building equity and, yes, some luck too. You don’t need millions — even $100 is enough to get started.
Max out your retirement contributions. As politicians dole out tax breaks to billionaires, don’t forget about what’s available to you too. Retirement accounts, like 401(k)s, traditional IRAs and Roth IRAs, are some of the most efficient tools for growing your wealth, thanks to their tax advantages. If your employer offers matching contributions, put in enough to get your maximum amount.
While Congress subsidizes flying mansions for the rich, there’s no reason us regular Joes can’t play the same tax game — even if the rules look a little different. Besides, somebody’s got to keep economy seats warm.
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