Transcript:

The owner of an aircraft cannot begin depreciating it for tax purposes until it has been placed in service for business use. A common accounting rule of thumb is to require that the aircraft had been used for at least 1 business flight. Technically though, it is in service when it is ready and available for its intended business use, so an initial flight may not be the in service moment. Facts that might render it not in service although it has been purchased include if the crew is not ready, if it needs further completion work or refurbishment before it is ready for its intended purpose, and if it is not geographically where it needs to be.