What type of documents do I need to support my aircraft deductions?

Transcript:

Just like any other deductions you’re going to take on your tax return, aircraft deductions, many of which are direct expenses. You want to keep receipts, you want to keep any invoices, and proof of when that expense was incurred, and how the expense was paid. On top of those traditional documents that you would keep, aircraft also require a flight log, if you’re going to take depreciation deductions and expense deductions.

What taxing authorities should I be aware of when operating an aircraft?

Transcript:

When operating an aircraft there’s a bunch of authorities that we’re always paying attention to. We want to make sure we’re FAA compliant and DOT compliant. There’s also a variety of different taxing authorities that one should be aware of or conscious of when they’re operating a business aircraft. The IRS is a simple, kind of first thing we think of when we think of taxing authorities. It is important to comply with IRS rules and regulations,

What schedule do I use to depreciate my aircraft?

Transcript:

The schedule that you use to depreciate your aircraft is going to be determined by the use profile of the aircraft subject to the depreciation. Most part 91 business aircraft are depreciated on a 5 1/2-year makers schedule, accelerated schedule or a 6-year straight line schedule provided that there’s at least 50% business use and at least 25% qualified business use in the tax year at hand if you’re using the accelerated schedule.

What records are needed for the California interstate commerce exemption?

Transcript:

For the California Interstate Commerce Exemption, documentation is critical. You want a thorough accounting of all the aircraft use both before entering California and during the 6-month period after entering. Trips claimed as interstate commerce should include specific details such as business associates you met with, meeting agendas, business cards, or corroborating e-mails. With good documentation this is an excellent exemption to benefit from. Without it, the exemption may likely be denied.

What is truth-in leasing?

Transcript:

The truth in leasing rule requires that any time use of a large aircraft, meaning one greater than 12,500 pounds gross takeoff weight is sold. The terms of that sale must be clear and well documented. It must be in writing and signed with one copy kept on board the plane and one copy sent to the FAA at least 24 hours before the lease’s first flight. The agreements need certain specific disclosures right above the signature line and the parties must contact the FAA at least 48 hours before the first flight,