Depreciation
Depreciation has two meanings for aircraft owners. Market depreciation is the loss in resale value, historically 5–10% a year for a new business jet in normal conditions, faster in the first few years and slower once the aircraft is a decade old, with occasional periods, such as 2021–2023, when used prices actually rose. Tax depreciation is the deduction a business can claim for the cost of an aircraft used in its trade, spread over five to seven years in the United States under MACRS. Buyers should model both: the tax benefit is real but conditional on business use and documentation, while the market loss is the largest single cost of owning a new aircraft.