Estimated Trade-In vs Sale Analysis
   
Advocate Consulting Legal Group, PLLC    
     
               
Inputs:           2006-1122  
 
Current Aircraft:  
Initial Aircraft Purchase Price   Estimated Prior Accum. Depreciation    
Initial Aircraft Purchase Date   Override if necessary  
Sale / Trade Date            
Sales Price / Trade-In Value   Life of Initial Aircraft Property    
     
Replacement Aircraft:    
 
Total Cost of Replacement Aircraft   Life of Replacement Aircraft Property  
Replacement Aircraft Basis (if trade) Auto-calculates  
       
Tax Rate (Federal & State) 40%    
               
Schedule of Net Total Depreciation Deductions          
   
  Sale and Purchase without Exchange 1031-Exchange Tax Effect of Exchange over Sale  
Year Sale of Current
Aircraft
Depreciation on
New Aircraft
Net Deductions
Due to Sale
Net Exchange
Deductions
Deduction
Differential
Tax Savings /
(Liability)
 
 
   
   
   
   
   
   
   
               
Totals  
       
These results illustrate depreciation that is allowable under current federal tax guidelines for qualified taxpayers who use their aircraft in their trade or business.  However, there are a number of factors that are dependent on individual taxpayer circumstances that can impact the amount of depreciation deduction available.  Aircraft used predominantly in charter or other commercial use are depreciation over a 7-year life.  Aircraft predominantly operated on a noncommercial basis are depreciated over a 5-year life.  For more information contact Advocate Consulting at 888-325-1942.    
   
Note: This information represents a general overview of tax deductions and should not be relied upon without an independent, professional analysis of how any of these provisions may apply to a specific situation.