Can we completely depreciate an aircraft which we purchased and placed on lease back this year?

[TomD8]

Here is what the IRS says about depreciation of leased property:

Leased property.   You can depreciate leased property only if you retain the incidents of ownership in the property (explained below). This means you bear the burden of exhaustion of the capital investment in the property. Therefore, if you lease property from someone to use in your trade or business or for the production of income, you generally cannot depreciate its cost because you do not retain the incidents of ownership. You can, however, depreciate any capital improvements you make to the property. See How Do You Treat Repairs and Improvements later in this chapter, and under Additions and ImprovementsWhich Recovery Period Applies   If you lease property to someone, you generally can depreciate its cost even if the lessee (the person leasing from you) has agreed to preserve, replace, renew, and maintain the property. However, if the lease provides that the lessee is to maintain the property and return to you the same property or its equivalent in value at the expiration of the lease in as good condition and value as when leased, you cannot depreciate the cost of the property.

Incidents of ownership.   Incidents of ownership in property include the following.

• The legal title to the property.

• The legal obligation to pay for the property.

• The responsibility to pay maintenance and operating expenses.

• The duty to pay any taxes on the property.

• The risk of loss if the property is destroyed, condemned, or diminished in value through obsolescence or exhaustion. 

• https://www.irs.gov/publications/p946/ch01.html