Feb. Special 
Issue
Year 2008

Welcome to PIREPS!

Please enjoy PIREPS and thank you for being part of the Premier family.

SPECIAL 2008 TAX DEDUCTION EDITION!

Breaking News! – Bonus Depreciation And Business Expensing Allow You To Deduct Up To 100%* Of A New Aircraft Purchased In 2008!

2008 is the year of the private aircraft buyer!

There’s a lot more going on in America’s political scene than just the upcoming presidential election and it’s great news for aircraft buyers – legislation was just signed into law that will mean huge tax savings to anyone who purchases a new or pre-owned aircraft in 2008!

The Recovery Rebates and Economic Stimulus for the American People Act 2008 offers accelerated tax deductions to qualifying businesses that take delivery of a new aircraft before the end of 2008.

“The 2008 economic stimulus bill provides both a 50 percent bonus depreciation on new aircraft purchases, and an expanded maximum $250,000 expensing election for taxpayers who invest less than $1,050,000 in new or used capital assets,” explained Louis Meiners, Jr., president, Advocate Aircraft Taxation Company.

“This is an incredible opportunity for small to mid-size businesses to start enjoying the benefits of owning a new or pre-owned airplane, while taking advantage of unprecedented tax deductions and savings,” added Earle Boyter, executive vice president and partner, Premier Aircraft Sales, Inc. “As the old saying goes, ‘there’s never been a better time to buy.’”

Deduct up to 100% of a new Diamond or 82% of a new Mooney

You’ll be amazed by how much the new legislation will allow you to deduct in 2008. Advocate Consulting provided the following breakdown of estimated tax deductions on new Diamond and Mooney aircraft offered by Premier Aircraft Sales:

Diamond Model                       Cost**               2008 Deduction*           Deduction % of cost

DA20                                        $183,000                     $183,000             100%

DA40 XLS                                 $337,500                     $302,500             90%

DA42                                        $608,470                     $465,082             76%

Mooney Model             Cost**               2008 Deduction*           Deduction % of cost

Ovation2 GX                  $449,000                    $369,400               82%

Ovation3                       $474,900                    $384,940               81%

Acclaim                        $579,900                    $447,940               77%

Acclaim-Type S             $599,500                    $459,700               77%

These are “typical” deductions for aircraft purchased and put into service by the owner before September 30, 2008.  To find an approximation of the deduction available on the particular aircraft you are interested in, contact your Premier Aircraft Sales representative. Or you can visit Advocate Consulting’s website at: http://advocatetax.com/stimulusPackage.php and click on the “Depreciation & Section 179 Calculator.”

“You must take possession of your aircraft in 2008 to qualify for the expanded deductions,” Meiners said. “And the bonus depreciation is available only to new aircraft used primarily in business. To qualify as ‘business use’ it is usually over 50 percent usage.”

Tax savings on pre-owned aircraft purchases

There’s some good news in here for pre-owned aircraft buyers too. The 2008 expensing election applies to both new and pre-owned aircraft, but it is limited to the taxable income of the taxpayer. Aircraft ownership is also impacted by FAA rules, sales tax issues, and liability concerns, which must be blended with these new tax issues.

For more information, you can check out “Qualifying for Bonus Depreciation on Aircraft” and “Qualifying for the expanded 2008 Expensing Election” on Advocate Consulting’s website: www.advocatetax.com.

“Every aircraft buyer’s situation is different and I strongly suggest anyone who is considering buying a new or pre-owned airplane talk to an aviation tax advisor or contact Scott Battle or Greg Harper at our office to get all the pertinent information before they sign anything,” Meiners said. “There’s an incredibly attractive opportunity here – but you have to understand the rules.”

Contact your Premier Aircraft Sales representative today to find out how you can take advantage of these incredible 2008 tax deductions

*Based on general application of provisions of the Recovery Rebates and Economic Stimulus for the American People Act 2008. Application to specific circumstances may very. Consult your tax advisor for more information.

**Aircraft costs are for illustrative purposes only. Actual costs will vary due to optional equipment. See your Premier Aircraft Sales representative for details.