Mesinger Pulse: Time is marching on

Planning for Bonus Depreciation Frenzy will help close deals, says Jay Mesinger.

I always measure summer in the same fast-forward way. Memorial Day hits and summer officially kicks off, writes Jay Mesinger, CEO and founder of Mesinger Jet Sales. Then you blink and it’s the 4th of July. Before you know it, Labor Day arrives, signalling the end of the summer celebration. Ugh.

But what comes next? The fourth quarter – and with it, one of the biggest business opportunities of the year: the Bonus Depreciation Frenzy.

We’ve seen this movie before. The last time the frenzy hit, it was fuelled by two major forces: bonus depreciation and a wave of first-time buyers driven to private aviation by the pandemic and their desire to avoid commercial airports and mass transit. While the initial rush of new buyers may have tapered off, the allure of bonus depreciation remains and it’s powerful. Year-end deal momentum is real and if history is any guide, it’s coming.

So, what can you do now to prepare?

Start internally. Have your research team update market data. Know where the opportunities are. Understand current pricing and inventory availability. Be ready to guide buyers with confidence and accuracy.

Next, think logistically. What can you do to secure a pre-buy inspection and line up a path to closing before year-end? Start calling maintenance facilities to check availability. Find open slots. We’re quickly approaching the point where every day matters.

Remember, you cannot make year-end closing a contingency in your purchase agreement. If you want bonus depreciation, you must close, fly, and have the aircraft in service by December 31st. There are no extensions, no exceptions.

The best way to ensure that happens? Start now. Begin the search. Negotiate. Contract. Inspect. Fix discrepancies. Close. Every transaction takes longer than expected, and no two are alike. Delays happen, and you can’t plan for all of them. But you can plan ahead.

Need financing? All the more reason to get moving.

I’ve said it before, and it’s worth repeating: the best path to success is building a team that understands your goals, the seller’s needs, and the dynamics of the market. That team includes your tax adviser, aviation counsel, acquisition consultant or broker, financing partners and, if you’re new to ownership, a management company.

These people are essential to getting the transaction done right.

And let’s be clear, this isn’t just a ‘tax play’. It’s an aircraft acquisition strategy with a meaningful tax advantage if the structure, timing, and intent are right. Bonus depreciation isn’t for everyone. Not every buyer qualifies. Not every operation meets the use requirements. And not everyone should buy an aircraft.

But with the right plan, the right advisers and the right timing, many of you can put together a winning strategy that aligns your aviation needs with a strong tax outcome.

So, find your team. Ask the hard questions. Know what you’re getting into.

See you on the field.