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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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Politics

Wes Streeting denies Labour has made ‘mistakes’ with ‘unpopular’ policies despite poor local election results

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Wes Streeting denies Labour has made 'mistakes' with 'unpopular' policies despite poor local election results

Health Secretary Wes Streeting has defended “unpopular” policies such as the cut to the winter fuel allowance despite Labour’s poor performance at the local elections.

Mr Streeting denied the government had made any mistakes when asked whether the policy was partly to blame for the party losing 189 council seats less than a year since the General Election.

Since coming into government last July, Labour has enacted a number of policies that were not in its manifesto.

These include means-testing winter fuel payments for pensioners, increasing employers’ national insurance contributions and slashing £5bn from the welfare bill.

Asked what mistakes his government had made so far that had led to its drubbing at the ballot box, Mr Streeting told Sunday Morning with Trevor Phillips: “Well, we will make plenty of mistakes.”

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Pressed again on whether he believed “mistakes” had been made, the health secretary replied: “No. When we made those choices, we knew they would be unpopular. And we knew that they would be opposed.

“The reason we made those choices is because we genuinely believe they’re the right choices to get the country out of the massive hole it was left in. And right across the board. Whether it’s the NHS, whether it’s schools, whether it’s prisons, whether it’s our defence and security, whether it’s crime and policing, there were enormous challenges facing this country when we came in.

“And we’ve had to make big and sometimes unpopular decisions so that we can face those challenges and deal with them. People might thank us if we just kind of go for the easy but we want to make the right choices.”

Some Labour MPs have urged the government to change direction, with one telling Sky News the cut to winter fuel was a “catastrophic error” that must be “remedied” if the party is to see any improvement in public opinion.

Others have warned that in courting Reform voters, the party risks fracturing its coalition of voters on the left who may be tempted by the Liberal Democrats and Green Party.

However, in the aftermath of the local elections, Sir Keir Starmer suggested the poor results meant he needed to go “further and faster” in delivering his existing agenda.

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Inside Reform’s election success

The real victor to emerge from Thursday’s local elections was Reform UK, which won control of 10 councils and picked up 677 council seats largely at the expense of the Conservatives in the south.

However, Reform also won the Runcorn by-election from Labour by just six votes, as well as control of Doncaster Council from Labour – the only local authority it had control of in this set of elections – in a significant win for Nigel Farage and his party.

The Reform UK leader declared that two-party politics was now “finished” and that his party was now the official “opposition” to Labour.

Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Mr Streeting said: ” I certainly do treat them as a serious opposition force.”

“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.

“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”

Read more:
Reform’s mission to ‘remoralise’ young people
Reform has put the two traditional parties on notice

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Reform UK are ‘fighting force’

Tory Party chairman Nigel Huddleston said Reform UK was not just a protest party and that Mr Farage was “a force in British politics”.

He told Trevor Phillips: “But the one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.

“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”

“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.

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Environment

It’s back: Hyundai IONIQ 5 qualifies for $7,500 tax credit – again!

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It's back: Hyundai IONIQ 5 qualifies for ,500 tax credit – again!

The Hyundai IONIQ 5 got a raft of upgrades and sporty, rally-focused XRT trim level for 2025 – but the biggest upgrade for the Made in America Hyundai might be this: the 5 has regained eligibility for the full $7,500 federal EV tax credit!

Despite being assembled at Hyundai’s Georgia meta plant for the last four month, the 2025 Hyundai IONIQ 5 was nowhere to be found on the EPA’s list of rebate-eligible vehicles. But that was then – with a fresh updated to the list coming online May 1st, Hyundai’s new-age electric hot hatch is back in the rebate game.

It’s worth noting that lease customers had been able to access the incentive under some circumstances, but this latest update to the EPA list makes it possible for cash and payment buyers to take advantage of the full Federal incentive, too – as long as they earn less than $300,000 as a married couple filing jointly, less than $225,000 as a head of household, or less than $150,000 as an individual.

With the $7,500 federal tax credit in the equation, you can get a new 2025 IONIQ 5 for somewhere in between $36,575 and $49,475, well under the $80,000 Federal MSRP cap.

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Victory lap

As if to celebrate, Hyundai announced that it was taking on the celebrate One Lap of America road rayy and race event in a factory collaboration with the track-focused enthusiasts at Grassroots Motorsports this week with One Lap veterans Andy Hollis and Tom Suddard campaigning a stock, 601 hp 2025 Hyundai IONIQ 5 N in the Alternative Fuels class.

“After winning our class in a gutted, caged race car last year, we wanted to compete in the best-of-all worlds this year: A vehicle that’s incredibly fast, incredibly comfortable on a road trip, and incredibly capable on a racetrack,” explains Suddard. “Electrification means it’s finally possible to have huge power without huge compromises in a street car, and the IONIQ 5 N promises to pair that huge power with the durability and capability to survive a week of racing.”

One Lap is widely regarded as one of the toughest street-legal motorsports events in the world, pitting amateur and professional drivers alike compete in stock and heavily modified vehicles of every description, battling it out in a series of scored challenges, including timed events at road courses, drag strips, skid pads, and autocross courses.

In between tracks, competitors safely travel thousands of miles around the country, proving the mettle and durability of the vehicles and the teams that drive them. This year, 86 teams from all over the country will compete in 17 scored events over the course of eight days at tracks like Virginia International Raceway and NCM Motorsports Park.

The Tire Rack One Lap of America is currently underway – you can track the Hyundai’s progress here, then let us know what you think of this new tax development in the comments.

SOURCES | IMAGES: Hyundai, One Lap of America; FuelEconomy.gov.


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Politics

It is ‘feasible’ Nigel Farage could be the next prime minister, says Kemi Badenoch

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It is 'feasible' Nigel Farage could be the next prime minister, says Kemi Badenoch

Kemi Badenoch has admitted it is “feasible” that Nigel Farage could become the next prime minister.

The Tory leader told the BBC’s Sunday With Laura Kuenssberg programme Mr Farage’s party was “expressing the feeling of frustration that a lot of people around the country are feeling” – but added it was her job to “come up with answers and solutions”.

Asked if it was feasible that Mr Farage could be the next prime minister, she cited how Australian Prime Minister Anthony Albanese had won re-election this weekend.

“As I said, anything is feasible,” she said. “Anthony Albanese: people were writing him off. He has just won a landslide, but my job is to make sure that he [Farage] does not become prime minister because he does not have the answers to the problems the country is facing.”

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Could Nigel Farage be prime minister?

Asked what Mr Farage was doing right, Ms Badenoch said: “He is expressing the feeling of frustration that a lot of people around the country are feeling.

“But he also doesn’t have a record in government like the two main parties do. Now he’s going to be running some councils. We’ll see how that goes.”

Mr Farage was the undoubted winner of Thursday’s local elections, in which 23 councils were up for grabs.

His party picked up 677 council seats and took control of 10 councils.

By contrast, the Conservatives lost 677 council seats as well as control of 18 councils in what was their worst local elections performance on record.

Mr Farage said the outcome spelt the end of two-party politics and that his party was now the official “opposition” to Labour – with the Tories having been rendered a “waste of space”.

Read more:
Reform has put the two traditional parties on notice

‘I get it’: Starmer responds after losing Runcorn by-election

Ms Badenoch said she believed the vote for Mr Farage on Thursday was partly down to “protest” but added: “That doesn’t mean we sit back. We are going to come out fighting.

“We are going to come out with the policies that people want to see, but what we are not going to do is rush out and tell the public things that are not true just so we can win votes.

“This is not about winning elections; this is about fixing our country. Yes, of course, you need to win elections to do that, but you also need a credible plan.”

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‘Farage is a force in British politics’

Conservative co-chairman Nigel Huddleston sought to play down the threat from Reform UK, telling Sky News: “When they’re in a position of delivering things, that’s when the shine comes off.”

He told Sunday Morning with Trevor Phillips: “The one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.

“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”

“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.

Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Health Secretary Wes Streeting told Trevor Phillips: ” I certainly do treat them as a serious opposition force.”

“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.

“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”

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