Employing an aircraft in a business can be one of the most satisfying acquisitions for any business owner or executive. Aircrafts provide the ability to be at a location or meeting on very short notice, and they provide the best use of executive time while in transit. They alleviate the hassles of commercial flight and allow the business owner to work in a comfortable environment while traveling.
Unfortunately, the Internal Revenue Service, state income tax and sales/use tax authorities, and the FAA do not have the same appreciation for your aircraft. The IRS and other taxing authorities are seeking ways to eliminate the deductions associated with business aircraft operations and to impose sales or use taxes on the acquisition of the airplane—even where obvious exemptions exist under the state’s statute.
Have your CPA or tax advisor and attorney involved at the very beginning of negotiations to acquire your aircraft. Our partners have over twenty years of consulting experience advising our clients about the proper tax and operating structure for your aircraft. We can help you with the proper steps and documentation to ensure you receive your sales or use tax exemption and tax deductions for your aircraft.
We also have extensive experience in defending your deductions and exemptions when they are under audit. If you have been contacted by the IRS, a state tax authority, or the Board of Equalization, get in touch with us, and we will assist with the management and defense of your audit. Don’t get caught writing a big check to the government that not only includes tax, but penalties and interest.