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The very top of the 1% are waiting until after the presidential election to buy big ticket items like jets in the hopes that Donald Trump’s election could save them millions on taxes, The Post has learned. 

Im waiting until after November, one bi-coastal source who is looking to buy both a jet and a yacht for his business told The Post.

If I can save millions on my taxes by waiting a few more months I will.

Business owners or even someone who is paid through an LLC as a consultant can deduct the cost of buying a jet or yacht if it is used for a business expense like flying to meetings or hosting clients.

Separate tax deductions allow them to claim its running costs too.

Trump told a group of billionaires at a recent Palm Beach fundraiser hosted by hedge fund manager John Paulson that restoring the 2017 Tax Cuts and Jobs Act is a priority, according to CNN.

One of those cuts was 100% depreciation, or deducting the entire cost of a yacht or jet used for business expenses from taxes.

That means a $40 million jet is equivalent to a $40 million deduction from your tax bill — or nearly $15 million in savings given the average tax rate on the wealthiest Americans is 37%.

The amount someone can deduct from a tax bill for a capital investment — an item like a jet that can help a company’s growth — fell from 80% last year to 60% this year, in line with how the 2017 tax cuts were put in place.

It will drop to 40% in 2025, 20% in 2026, and 0% in 2027 unless the tax cuts are restored.

Trump’s comments behind closed doors have not been mirrored in public so far.

But a source involved in the Palm Beach International Boat Show in March which showed more than 800 boats and attracted more than 55,000 visitors told The Post that one of the main topics was whether to wait until after the election.

The boat show didn’t disclose how many sales were made. The yacht and private jet industries are intensely private.

“A lot of us are waiting to see what happens in the election… the Republican Party has promised 100% write-offs so that would save companies,” the Florida-based source added.

The prices of jets and yachts seem to show demand is slowing. In recent months, demand for anything between a super-midsize jet, which can sell for as little as $12 million, and ultra-long range aircraft, which can sell for as much as $75 million, has dipped according to CEO of Mikolay Jet Group Michael Mikolay.

A super-midsize aircraft like a Gulfstream G280 or Bombardier Challenger 300 can fly around 3,500 miles or the distance between New York and London.

An ultra-long range aircraft like a Bombardier Global 6000 or Gulfstream G700 can fly more than 8,000 miles the distance from NYC to the Middle East.

“Basically, there is more supply than demand right now,” Mikolay said of the pre-owned market in particular.

Between October 2023 and March 2024, 719 jets were sold — down from 815 jets sold in the same period the year before.

While the largest yachts, which can cost north of $65 million and typically attract international buyers aren’t taking a hit, the market for slightly cheaper boats in the $40 million to $65 million range is softening, super yacht broker Jamie Edmiston said.

A source in the jet space said his business clients — as opposed to those buying for leisure — are more sensitive to tax implications like the rate of depreciation.

If someone wants to buy his wife a Birkin he’ll spend the money but if hes looking to buy a jet for his business and he can save millions, hell wait, the source added.

Rich people   like anyone else want to save on taxes and if there is a legal way to do it they will. 

Partner at Soar Aviation Law Amanda Applegate said sales typically fall in the lead up to an election, “I do usually see a slow down every presidential election year” but adds it is more pronounced closer to August.

Chair of Business Aviation and Regulation practice at law firm VedderPrice David Hernandez told The Post he warns clients that waiting for a more favorable tax scheme doesn’t always work out — and that it can result in some sellers charging more.

If youre rushing to buy a plane at the end of the year, chances are sellers will increase their prices because they know you are desperate,” he adds.

Another chilling factor spooking potential jet buyers, Hernandez adds, is the increase in audits of jet owners that the IRS announced in February.

With expanded resources, IRS work in this area [private aircraft] will take off, IRS Commissioner Danny Werfel said earlier this year.

These aircraft audits will help ensure high-income groups arent flying under the radar with their tax responsibilities.

The IRS is expected to verify that someone writing a plane off their taxes is actually using it for business expenses — flying to visit clients or a factory they’ve invested in — as opposed to jetting to the Bahamas for a long weekend.

But Hernandez advises clients that there is no cause for alarm if you’re not doing anything illegal, “If you havent done anything wrong, who cares.”

The bi-coastal source who told The Post he is waiting to make a purchase said he plans to buy a yacht and a jet no matter what — he just wants to be smart about timing.

“There is huge value in having a boat… I can have a captive audience on my yacht for three hours who can’t wander anywhere and have to discuss business with me,” he added.

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Sports

Canes’ Andersen, 35, secures deal before Round 2

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Canes' Andersen, 35, secures deal before Round 2

RALEIGH, N.C. — The Carolina Hurricanes have signed goaltender Frederik Andersen to a one-year contract for next season, worth $2.75 million for the 35-year-old veteran.

General manager Eric Tulsky announced the deal Saturday, a little over 48 hours before his team starts the second round of the playoffs against the Washington Capitals.

Andersen could earn up to $750,000 in incentives for games played and his participation in a potential run to the Eastern Conference finals next season. He would get $250,000 for playing 35 or more games, another $250,000 for getting to 40 and $250,000 if the Hurricanes reach the East finals and he plays in at least half of the playoff games.

“Frederik has played extremely well for us and ranks in the top 10 all-time for winning percentage by an NHL goalie,” Tulsky said. “We’re excited that he will be staying with the team for next season.”

Andersen and the Hurricanes, the No. 2 seed in the Metropolitan Division, advanced past the New Jersey Devils in Round 1 last week. They will meet the Capitals, who won the division crown, for the right to make the NHL’s final four.

Extending Andersen could give the team a goaltending tandem with Pyotr Kochetkov for less than $6 million combined.

Anderson, a Denmark native who previously played for the Anaheim Ducks and Toronto Maple Leafs, has become coach Rod Brind’Amour’s most trusted option in net. He is expected to return to the starting role for Game 1 of the Capitals series after getting injured in the first round against New Jersey.

The Associated Press contributed to this report.

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UK

Child sexual abuse victims ‘denied justice’ after compensation scheme scrapped over cost

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Child sexual abuse victims 'denied justice' after compensation scheme scrapped over cost

Sky News can reveal that the government has rowed back on a national compensation scheme for victims of child sexual abuse, despite it being promised under the previous Conservative administration.

Warning – this story contains references to sexual and physical abuse

A National Redress Scheme was one of 20 key recommendations made by the Independent Inquiry into Child Sexual Abuse (IICSA), but a Home Office report reveals the government has scrapped it because of the cost.

Marie, who is 71, suffered alleged sexual, physical, and emotional abuse at Greenfield House Convent in St Helens, Merseyside, between 1959 and 1962, and is still fighting for compensation.

Greenfield House Convent, where Marie says she was abused
Image:
Greenfield House Convent, where Marie says she was abused

As soon as she arrived as a six-year-old, Marie says her hair was cut off, her name changed, and she experienced regular beatings from the nuns and students.

She claims a nun instigated the violence, including when Marie was held down so that her legs were “spread-eagled” as she was sexually abused with a coat hanger.

Merseyside Police investigated claims of abuse at the convent, but in 2016, a suspect died before charges could be brought.

More on Children

Marie has received an apology from the Catholic body that ran the home; she tried to sue them, but her claim was rejected because it was filed too long after the alleged abuse.

Marie is still fighting for compensation for the abuse she suffered
Image:
Marie, 71, is still fighting for compensation for the abuse she says she suffered as a child

In February, ministers said the law would change for victims of sexual abuse trying to sue institutions for damages, which was a recommendation from the IICSA.

Previously, people had to make a civil claim before they were 21, unless the victim could prove a fair trial could proceed despite the time lapse.

Campaigners argued for the time limit to be removed as, on average, victims wait 26 years to come forward. Changes to the 1980 Limitation Act could lead to more people making claims.

Peter Garsden, President of The Association of Child Abuse Lawyers
Image:
Peter Garsden, President of The Association of Child Abuse Lawyers

Civil cases ‘can take three to five years’

But Peter Garsden, president of the Association of Child Abuse Lawyers, worries that when it comes to historical abuse where the defendant is dead, institutions will still argue that it is impossible to have a fair trial and will fight to have the case thrown out of court.

Mr Garsden said it takes “between three and five years” for a civil case to get to trial.

He warned that claimants “can end up losing if you go through that process. Whereas the Redress Scheme would be quicker, much more straightforward, and much more likely to give justice to the victims”.

Victim awarded £10 compensation

Jimbo, who was a victim of abuse at St Aidan’s children’s home in Cheshire, took his case to the High Court twice and the Court of Appeal three times, but, after 13 years, all he ended up with was £10 for his bus fare to court.

Despite the Lord Justice of Appeal saying he believed that the abuse had occurred, Jimbo lost his claim because of the time limit for child sexual abuse claims to be made.

Read more from Sky News:
Call for Labour minister to resign over grooming gang remarks
PM says govt will fund further local grooming gangs inquiries if ‘needed’

Neither Marie nor Jimbo is likely to benefit from the removal of the time limit for personal injury claims, which is why Mr Garsden is calling on the government to implement a National Redress Scheme for victims of sexual abuse, as recommended by the IICSA.

Hundreds of millions paid to victims

The governments in Scotland and Northern Ireland have set up compensation schemes and paid hundreds of millions of pounds to victims.

In 2023, the then Conservative government said a similar scheme would be organised for England and Wales.

But the Home Office admitted in its Tackling Child Sexual Abuse: Progress Update that it “is not currently taking forward any further steps on the IICSA proposal for a separate, national financial redress scheme for all survivors of child sexual abuse”.

“In the current fiscal environment, this recommendation is very difficult to take forward,” it added.

For victims, the scheme was the last chance of compensation for a lifetime blighted by abuse.

“The money is about justice and about all the other people who have had to suffer this abuse,” Marie said.

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Politics

OKX fires back at Tron’s Justin Sun over mysterious ‘freeze notice’

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<div>OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'</div>

<div>OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'</div>

OKX founder and CEO Star Xu has publicly defended the crypto exchange after Tron founder Justin Sun accused it of failing to act on a law enforcement request to freeze stolen funds following a recent hack of Tron’s official X account.

“OKX also has consumers protection policy according to law, we can’t freeze a customer’s funds according to your personal X post or an oral communication. I think you should understand it as the CEO of HTX,” Xu said in an X post.

OKX says there is no communication in the spam box, either

Xu said that the crypto exchange had not received any related correspondence through OKX’s official channels. “Our LE cooperation team just checked the email, including the spam box; we haven’t received any request related with this case,” Xu said.

Cryptocurrencies, Tron, OKX
Source: Star Xu

In what is now an unavailable X post, but was screenshotted by Xu, Sun had earlier claimed that OKX has not responded to a “freeze notice” sent to its official email address from a “relevant law enforcement agency.” Sun said that he had no other way to contact OKX’s compliance department.

“These stolen funds do not belong to me; I’m acting to protect the community,” Sun said. On May 3, Tron DAO told its 1.7 million X followers that its account had been compromised. Tron explained that during the breach, an unauthorized party posted a malicious contract address, sent direct messages, and followed unfamiliar accounts.

“If you received a DM from our account on May 2, please delete it and consider it the work of the attacker.”

In response to Sun’s claims of inaction, Xu publicly called on him to provide a screenshot showing when and where the law enforcement request was made.

The Tron incident is one of several recent security breaches involving high-profile crypto accounts on X.

Related: Over 14,500 Tron addresses at risk of silent hijacking

Kaito AI, an artificial intelligence-powered platform that aggregates crypto data to provide market analysis for users, and its founder, Yu Hu, were the victims of an X social media hack on March 15. The hackers opened up a short position on KAITO tokens before posting that the Kaito wallets were compromised and advised users that their funds were not safe.

The Pump.fun X account was compromised on Feb. 26 to promote a fake governance token called “PUMP” and other fraudulent coins.

Meanwhile, the X account of UK member of Parliament and Leader of the House of Commons, Lucy Powell, was hacked to promote a scam crypto token.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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