Maximizing Tax Benefits and Travel Efficiency

Client Situation: Our client, a frequent traveler for both business and personal reasons, approached EFFI just before the fiscal year-end to explore tax-saving strategies.

EFFI Provided: 

  • Tailored Financing: EFFI Finance offered personalized financing options, covering down payments, amortization terms, fixed interest rates, and addressing the balloon payment, all customized to align with the client’s financial goals.
  • Tax-Efficient Strategies: Leveraging EFFI Finance’s expertise in aircraft financing and tax planning, John was able to acquire the HondaJet as an exciting asset while simultaneously benefiting from tax advantages, such as depreciation write-offs. This strategy optimized his financial position, making it an appealing solution for highly successful CEOs with similar aspirations.

How We Structured the Deal:

  • The financing structure chosen included a down payment and was amortized over 8 years.
  • The rate was fixed for the term which was 5 years.
  • The balloon remaining would be either paid off at the end of the term, refinanced, or even paid off with the exchange of another aircraft.
  • Documentation was completed in-house and minimized the total cost of the transaction.

More About Section 179 Deduction: The Section 179 deduction, which permits business owners to deduct the full purchase price of qualifying equipment, such as HondaJets, up to a specified limit, from their taxable income in the year of purchase. The TCJA had increased the deduction limit to $1 million, making it an attractive option to consider.

More About The Tax Cuts and Jobs Act (TCJA) of 2017:  I introduced favorable tax provisions related to bonus depreciation for business aircraft. The legislation allowed companies and business owners to depreciate the cost of a new aircraft, including HondaJets, more quickly and substantially, leading to significant tax savings.


For financing that’s straightforward and transparent, EFFI has Well Priced options for your business. Contact us today.