Don’t cry because you’re not going to Aspen this year, smile because a ski family might avoid paying some taxes by flying there privately. Bloomberg reported yesterday that ultra-wealthy Americans are taking full advantage of a new rule in the One Big Beautiful Bill Act that allows them to completely write off certain high-value assets.
ICYMI: President Trump’s landmark legislation expanded a tax break known as bonus depreciation, which now lets business owners deduct 100% of certain purchases from their taxable income. Eligible splurges include yachts, cars, racehorses, and private jets—as long as they’re used for business more than half of the time. Demand is climbing:
- Sales of private jets are up by 11% from this time last year, according to data from the jet broker Global Charter.
- Horse sales at the world’s largest thoroughbred auction in Kentucky grew by 24% last month compared to 2024.
Gas stations and car washes also qualify. Sales of these establishments spiked after Trump temporarily expanded bonus depreciation in 2017. One entrepreneur told Bloomberg that he avoided millions of dollars in taxes by buying several car washes, which offset income from the sale of his family business.
Looking ahead…this rule will cost the IRS $363 billion in lost revenue over the next decade, according to estimates by Congress’s Joint Committee on Taxation.—ML