{"id":62965,"date":"2017-06-29T16:50:13","date_gmt":"2017-06-29T16:50:13","guid":{"rendered":"https:\/\/www.stratosjets.com\/blog\/\/"},"modified":"2023-11-23T10:27:22","modified_gmt":"2023-11-23T10:27:22","slug":"depreciation","status":"publish","type":"post","link":"https:\/\/www.stratosjets.com\/glossary\/depreciation\/","title":{"rendered":"Depreciation"},"content":{"rendered":"<p>Depreciation is one factor taken into consideration by jet charter companies when determining the cost of a private jet. Just like purchasing a brand new car, aircrafts also fall victim to depreciation. In accounting terms, depreciation is the method used when reallocating the cost of a physical asset over its life span once it\u2019s purchased or put to work.<\/p>\n<h2>Depreciation at Tax Time<\/h2>\n<p>In general, depreciation is used as an income tax deduction. It\u2019s always carefully considered when determining the cost of a private jet. This allows the operator\/tax payer to recoup some of the costs of the aircraft once it\u2019s placed into service. Some of the factors that lead an aircraft to depreciate include:<\/p>\n<ul>\n<li>The manufacture date\/age of the aircraft<\/li>\n<li>Everyday wear and tear from use<\/li>\n<li>Fluctuating market conditions<\/li>\n<\/ul>\n<p>When tax season rolls around, the tax payer may be faced with a few challenges surrounding the aircraft\u2019s depreciation. First, an appropriate depreciation rate must be chosen. In order to do this, the operator\/taxpayer must estimate the lifespan of the aircraft.<\/p>\n<p>In order to assist with this calculation, there are several methods of depreciation that an owner may use. Some of these methods include:<\/p>\n<ul>\n<li>Straight-line depreciation<\/li>\n<li>Doubling declining balance method<\/li>\n<li>Annuity depreciation<\/li>\n<li>Sum-of-years-digits method<\/li>\n<li>Units-of-production depreciation method<\/li>\n<\/ul>\n<p>On average, an aircraft asset is typically written off over a period of six years. In most cases, the lifespan of an aircraft is much longer than six years.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Depreciation is one factor taken into consideration by jet charter companies when determining the cost of a private jet.","protected":false},"author":2,"featured_media":60984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1402],"tags":[978],"acf":[],"_links":{"self":[{"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/posts\/62965"}],"collection":[{"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/comments?post=62965"}],"version-history":[{"count":1,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/posts\/62965\/revisions"}],"predecessor-version":[{"id":94036,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/posts\/62965\/revisions\/94036"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/media\/60984"}],"wp:attachment":[{"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/media?parent=62965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/categories?post=62965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stratosjets.com\/wp-json\/wp\/v2\/tags?post=62965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}