Can you define Personal Aircraft Use briefly?
Personal aircraft use can take two forms, personal entertainment (PE) and personal non-entertainment (PNE). Tax treatment for PE use is in a state of flux awaiting final rules from the IRS. This presentation discusses potential tax implications for the personal entertainment use of an aircraft. PNE use or compensatory use is treated as a fringe benefit to the person benefiting from the use of the aircraft. So long as the individual reports the SIFL income (fringe benefit income), such use is considered to be business use by the company providing the fringe benefit. This video describes the various scenarios.
How do you work with our existing attorneys and CPAs?
An effective aviation tax plan must be integrated with the rest of a client’s business planning in order to be effective. Because our practice is restricted to the area of aviation, working with core professionals is essential. All of our planning and documentation is available for review by these core professionals and through teamwork we can provide benefits of specialized knowledge appropriate and helpful to your other business needs.
Why do you insist upon a three (3) year service agreement, why can’t I just buy a few hours of your time?
The key to successful aviation tax planning follows not only the creation of a well designed plan, but also its implementation and modification where appropriate to changing business needs as well as regulatory and tax requirements. Federal Aviation Regulations require periodic filing of documents; taxing authorities require continuous compliance issues; operations outside the scope of insurance coverage could have devastating consequences.
What happens after the three year service agreement period?
After the three year period, you will have all the tools that we have used in the design and implementation of your aircraft planning program. You may choose to take responsibility for continued compliance on your own or choose to renew your agreement. Generally, clients renew due to the inherent complexity of aircraft operations.
What happens if I sell my airplane and get out of aviation during the three year period?
Our agreement automatically terminates at the close of the year following the sale of the aircraft. We will assist you in final tax returns and help you “button up” your aircraft operations.
What happens if I trade airplanes during the three year period?
You will enter into a new three year agreement, but will be given credit of the unexpired portion of the agreement on your current aircraft.