Ultra-rich put off buying yachts, jets in hope of massive Trump tax break if he wins

Published

2 weeks ago

April 19, 2024

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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.

UK

Polls close in local elections around England and Wales – what to expect

Published

1 hour ago

May 2, 2024

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Polls close in local elections around England and Wales - what to expect

Polls have closed in local elections taking place across England and Wales.

More than 2,600 council seats across 107 councils are up for grabs in England, alongside 11 mayoral elections, a parliamentary seat and police and crime commissioners throughout England and Wales.

Polls opened at 7am, and closed at 10pm, with counting now under way.

Local elections: Follow the results live

Sky News will be covering the results overnight with a special programme hosted by Jonathan Samuels beginning at midnight, and coverage into the weekend.

The results unfolding in the next hours and days will give an indicator of public opinion on the political parties as the UK heads towards a general election.

Labour is hoping to make gains across the country, while the Conservatives will hope to minimise losses as they sit around 20 points behind the opposition in the polls.

Keen attention will be paid to the mayoral races being held in the West Midlands and the Tees Valley – Red Wall seats that the Conservatives won under Boris Johnson with mayors Andy Street and Lord Ben Houchen respectively.

Losses there could prove difficult for Prime Minister Rishi Sunak – with rumours that if both turn red it could spark a leadership contest.

Labour‘s Sadiq Khan is hoping to win a record third term as the mayor of London, running against the Conservative’s Susan Hall, with 25 seats on the London Assembly also up for grabs.

Sky’s election coverage plan – how to follow

Thursday into Friday: From 12am until 6am, Jonathan Samuels will be joined by political correspondents Tamara Cohen and Gurpreet Narwan, as well as teams from across the country.

Friday: Lead politics presenter Sophy Ridge and chief presenter Mark Austin will be joined by political editor Beth Rigby and deputy political editor Sam Coates throughout the day, as well as economics and date editor Ed Conway and election analyst Professor Michael Thrasher.

Friday night: From 7pm until 9pm, Sophy Ridge will host a special edition of the Politics Hub, offering a full analysis and breakdown of the local elections.

The weekend: Sophy Ridge will host another special edition of the Politics Hub on Saturday from 7pm until 9pm. And Sunday Morning with Trevor Phillips will take a look back over what’s happened from 8.30am until 10am.

How do I watch?: Freeview 233, Sky 501, Virgin 603, BT 313, YouTube and the Sky News website and app. You can also watch Sky News live here, and on YouTube.

And the Electoral Dysfunction podcast with Beth Rigby, Jess Phillips and Ruth Davidson will go out on Friday, and Politics at Jack and Sam’s will navigate the big question of where the results leave us ahead of a general election on Sunday.

There are further mayoral elections in the East Midlands, Greater Manchester, Liverpool City Region, the North East, South Yorkshire, West Yorkshire and York & North Yorkshire. An election is also taking place for the Salford city mayor.

A parliamentary by-election is taking place in Blackpool South to replace the former Conservative MP Scott Benton, who left parliament following a lobbying scandal.

The Tories are defending a majority of 3,690 – much smaller than several of those overturned by Labour in recent years.

In total, 37 police and crime commissioners are being elected across England and Wales – although two of those PCC roles are being absorbed into a mayor’s responsibilities, in South Yorkshire and York & North Yorkshire.

Speaking on the Political Currency podcast, former Conservative chancellor George Osborne said losing the West Midlands would be “pretty bad” for Mr Sunak, while losing the Tees Valley would be “armageddon”.

“There will be people in the Conservative Parliamentary Party saying, ‘Change course, change leader’,” he said, adding: “You would never have guessed 20 years ago that the future of the Tory leadership would depend on how people are voting in Teesside. But I think right now, that is the case.”

The last time these council elections took place, the then prime minister Boris Johnson was riding high in the polls following the success of the vaccine rollout – taking his party to their best performance in the locals since 2008.

Transport Secretary Mark Harper said it was going to be “difficult to achieve on that”.

Asked if this was an admission the party is less popular under Mr Sunak than it was under Mr Johnson, Mr Harper said it was the context of having a “vaccine bounce” and coming out of the pandemic that made the party popular in 2021.

And Mr Sunak was at the time “the chancellor, who found the money to pay for rolling the vaccine out”.

In last year’s local elections – which were for different areas – Labour snatched key battlegrounds from the Conservatives but not at a rate high enough to indicate the opposition was on course to win if a general election took place.

This key metric, known as National Equivalent Vote (NEV), will be tracked over the weekend by Sky News election analyst Professor Michael Thrasher.

Asked what success would look like, Labour’s shadow chancellor of the Duchy of Lancaster Pat McFadden said his party is looking at the Blackpool South by-election “which is the only result where Rishi Sunak and the government are really on the ballot paper”.

A win there will show “real progress”, Mr McFadden said.

Asked about his party’s prospects in Tees Valley and the West Midlands, the veteran Labour MP said the Tories hanging on would “only be because they put as much distance as possible between themselves and Rishi Sunak and the Conservative Party brand”.

How many seats/councils are parties defending?

The Conservatives are defending 985 seats, Labour 965 and the Liberal Democrats 410.

The Greens hold 107 seats, while independents have 112 and other parties the remaining 57.

Labour currently has majority control in 45 of the 107 councils. The Conservatives control 18 and the Lib Dems 10.

Just under a third, 34 councils, are under no overall control.

Key battlegrounds

When it comes to councils, areas to watch out for include Hyndburn, Milton Keynes, Norwich, Tamworth, Reigate and Banstead, Hull, Walsall, Colchester, Stockport, Sheffield, Solihull, North East Lincolnshire, Lincoln, Peterborough, Rugby and Thurrock.

Sky News and YouGov asked around 9,000 people how they intend to vote, and used this to forecast how these will change.

Labour looks set to make a number of gains – although some races are too close to call.

Follow our live coverage of the election results from midnight – find the full details here

Politics

Chainalysis will help Tether monitor secondary market for illicit activity

Published

1 hour ago

May 2, 2024

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Chainalysis will help Tether monitor secondary market for illicit activity

The blockchain analytics firm will provide tools to spot sanctioned and illicit activity and provide market information.

Environment

The 2024 Chevy Blazer EV has a quirky $4k discount for Tesla drivers

Published

2 hours ago

May 2, 2024

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The 2024 Chevy Blazer EV has a quirky k discount for Tesla drivers

2024 Chevrolet Blazer EV — Chevy Blazer EV 2LT (Source: Chevrolet)

Chevy is offering a $4,000 discount for owners and lessees of Teslas and other EVs for the 2024 Blazer EV but with some quirky conditions.

Chevrolet’s conquest bonus cash offer doesn’t require a trade-in and can be transferred to household members, so that’s nice.

The $4,000 discount applies to both 2024 Chevy Blazer EV leases and purchases and according to CarsDirect, it can be stacked with other deals, such as the $7,500 tax credit and the $1,000 Costco member-only incentive.

Chevy also offers a $2,500 EV Loyalty Cash Allowance for current owners or lessees of a 2017 or newer Chevy Bolt or Bolt EUV.

All of that adds up to a nice price reduction for an EV with a base price in the mid-$50s.

But here’s where it gets a little quirky. As for which EVs you or your household members drive to qualify for the $4,000 discount, Tesla, of course, is on the list. So are Lucid, Rivian, and Fisker. CarsDirect notes that the Honda Fit EV qualifies, but the Hyundai IONIQ Electric doesn’t. Okayyy. So you’ll have to check with a dealer for your EV’s eligibility.

The $4,000 offer is also only being offered in what seems to be a somewhat random list of cities:

Albuquerque
Birmingham, Alabama
Charleston, West Virginia
Charlotte
Chicago
Dallas
El Paso, Texas
Greensboro, North Carolina
Greenville, South Carolina
Harrisburg, Pennsylvania
Huntsville, Alabama
Jacksonville
Little Rock
Mobile, Alabama
Norfolk, Virginia
Orlando
Richmond, Virginia
San Antonio, Texas
San Francisco
Savannah, Georgia
Tampa
Washington, D.C.

So if you want this deal and you don’t live in any of the above, then a road trip may be on the cards. (Atlanta and Santa Fe folks, I’m looking at you.)

And if that’s not possible, you’re not out of luck. If you want to lease, Chevy is offering $3,250 in lease cash for the Blazer EV in other parts of the US, and that’s open to everyone, regardless of what you or your household members drive.

The $4,000 conquest bonus cash deal is available from May 1 to June 3, 2024.

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