ARTICLE
17 December 2018

John Hoover Testifies For NBAA At IRS Hearing On Bonus Depreciation Regulations

HK
Holland & Knight

Contributor

Holland & Knight is a global law firm with nearly 2,000 lawyers in offices throughout the world. Our attorneys provide representation in litigation, business, real estate, healthcare and governmental law. Interdisciplinary practice groups and industry-based teams provide clients with access to attorneys throughout the firm, regardless of location.
The Internal Revenue Service (IRS) held a hearing on Nov. 28, 2018, regarding its proposed bonus depreciation regulations.
United States Transport

John Hoover is a Partner in Holland & Knight's Washington D.C. office

The Internal Revenue Service (IRS) held a hearing on Nov. 28, 2018, regarding its proposed bonus depreciation regulations. Holland & Knight Partner John Hoover testified on behalf of the National Business Aviation Association (NBAA) regarding the need to clarify the definition of a binding written contract under these regulations. Hoover's testimony was announced in an article issued in the NBAA Update newsletter.

Beginning in 2023, the bonus depreciation rate will begin phasing down over five years. If the buyer of a business aircraft has a binding written purchase contract, the buyer generally has a one-year extension on the date to place the aircraft in service under these rules. However, the current definition of binding written contract in the regulations arguably does not make it clear whether a contract will qualify as a binding written contract if the seller is only liable for a relatively small amount of liquidated damages upon the seller's breach. Consistent with NBAA's written comments prepared by NBAA Tax Committee members Alan Burnett and Glenn Hediger, Hoover testified that the final regulations should clarify that a contract only needs to be binding on the purchaser to qualify as a binding written contract.

The full text of testimony by Hoover, vice chair of the NBAA Tax Committee, is available on Holland & Knight's website.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More