AvBuyer Magazine – August 2019

(avery) #1
periods under ADS are longer than
recovery periods available under MACRS.
There is a variety of factors that
taxpayers must consider in determining if
a helicopter may be depreciated, and, if
so, the correct depreciation method and
recovery period that should be utilized.
For example, helicopters used in charter
service (i.e. Part 135) are normally
depreciated under MACRS over a seven-
year recovery period or under ADS using
a twelve-year recovery period.
Helicopters used for qualified business
purposes, such as Part 91 business use
flights, are generally depreciated under
MACRS over a period of five years or by
using ADS with a six-year recovery
period. There are certain uses of the
helicopter, such as non-business flights,
that may have an impact on the allowable
depreciation deduction available in a
given year.
Table D (right) depicts an example of
using the MACRS schedule for a 2018-
year model Bell 505 helicopter in private
(Part 91) or charter (Part 135) operations
over five- and seven-year periods,
assuming a used 2018 retail price of
$1.45m (per Vref).
Table E (bottom, right) depicts an
example of using the MACRS schedule
for a 2018 Robinson R66 helicopter in
private (Part 91) or charter (Part 135)
operations over five- and seven-year
periods, assuming a used 2018 retail
price of $0.99m (per Vref).

Asking Prices & Fleet for Sale
The current used helicopter market for
the Bell 505 shows a total of 13
helicopters for sale with 11 displaying an
asking price ranging from $1.36m to
$1.65m. We also reviewed the 51 used
Robinson R66 helicopters for sale which
displayed 43 asking prices ranging from
$0.485k to $1.25m.
While each serial number is unique,
the Airframe (AFTT) hours and
age/condition will cause great variations
in price. Of course, the final negotiated
price remains to be decided between the
seller and buyer before the sale of an
aircraft is completed.

Table C - Part 91 & 135 MACRS Schedule


2018 Robinson R66 - Private (Part 91)

Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M)
Cum. Depreciation ($M)

Source: Vref

Full Retail Price - Million $0.990
1
20.0%
$0.198
$0.792
$0.198

2
32.0%
$0.317
$0.475
$0.515

3
19.2%
$0.190
$0.285
$0.705

4
11.5%
$0.114
$0.171
$0.819

5
11.5%
$0.114
$0.057
$0.933

6
5.8%
$0.057
$0.000
$0.990
2018 Robinson R66 - Charter (Part 135)

Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M)
Cum. Depreciation ($M)

Full Retail Price - Million $0.990
1
14.3%
$0.141
$0.849
$0.141

2
24.5%
$0.242
$0.606
$0.384

3
17.5%
$0.173
$0.433
$0.557

4
12.5%
$0.124
$0.309
$0.681

5
8.9%
$0.088
$0.221
$0.769

6
8.9%
$0.088
$0.133
$0.857

7
8.9%
$0.088
$0.044
$0.946

8
4.5%
$0.044
$0.000
$0.990

Table E - Robinson R66
MACRS Depreciation Schedule

Year
Deduction

Year
Deduction
Source: NBAA

MACRS Schedule for PART 91

MACRS Schedule for PART 135

1
20.0%

2
32.0%

3
19.20%

4
11.52%

5
11.52%

6
5.76%

1
1 4.29%

2
24.49%

3
17.49%

4
12.49%

5
8.93%

6
8.92%

7
8.93%

8
4.46%

2018 Bell 505 - Private (Part 91)

Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M)
Cum. Depreciation ($M)

Source: Vref

Full Retail Price - Million $1.450
1
20.0%
$0.290
$1.160
$0.290

2
32.0%
$0.464
$0.696
$0.754

3
19.2%
$0.278
$0.418
$1.032

4
11.5%
$0.167
$0.251
$1.199

5
11.5%
$0.167
$0.084
$1.366

6
5.8%
$0.084
$0.000
$1.450
2018 Bell 505 - Charter (Part 135)

Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M)
Cum. Depreciation ($M)

Full Retail Price - Million $1.450
1
14.3%
$0.207
$1.243
$0.207

2
24.5%
$0.355
$0.888
$0.562

3
17.5%
$0.254
$0.634
$0.816

4
12.5%
$0.181
$0.453
$0.997

5
8.9%
$0.129
$0.323
$1.127

6
8.9%
$0.129
$0.194
$1.256

7
8.9%
$0.129
$0.065
$1.385

8
4.5%
$0.065
$0.000
$1.450

Table D - Bell 505 MACRS Depreciation Schedule



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