Tax law gives Wall Street a break when buying private jets
(Bloomberg) -- Wall Street money managers love to purchase fancy airplanes.
Thrive Capital Management, the venture capital firm run by Jared Kushner’s brother Joshua, bought a used Bombardier Challenger 300 earlier this year. Hedge fund manager Harsh Padia bought a used Bombardier Global Express last spring. Matthew Bronfman of Lincoln Avenue Capital, a real estate fund founded as an affiliate of his family office, bought and registered a used Bombardier 600 just days before Christmas.
While wealthy people buying airplanes is nothing new, the Republican-led tax overhaul provided a new incentive.
It’s not clear whether any of these money managers had this in mind when they bought their jets, but a provision in the new tax law caps deductions of so-called “excess business losses,” meaning that some investors can face sizable tax bills on personal income that they previously would have offset.
So some tax experts have found a way around the excess business loss cap, which was projected to raise $150 billion over 10 years -- by advising their clients to buy private planes. It’s an expensive purchase that can cost as much a $67 million but can arguably be used principally for work -- unlike, say, a yacht or a mansion in the Hamptons.
https://www.msn.com/en-us/money/taxes/tax-law-gives-wall-street-a-break-when-buying-private-jets/ar-BBUdO6A?li=BBnbfcN
I used to work for a telephone utility. I remember the company jet was used for among other things sending engineers to prefield a job they were designing.
These days they're nothing more than another CEO perk.
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Notice they're all buying used merchandise? It is such a shame. So really, they deserve any tax breaks they can get. 