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You are here: Home / Aircraft Income Tax

BONUS DEPRECIATION AND ENHANCED §179 EXPENSING EXTENDED TO 2015 AND BEYOND

  • 179 Expensing Election of $500,000; phase out starts when equipment purchases exceed $2,000,000.
  • 50% Bonus depreciation for factory new equipment

 

In a welcome display of good governance, Congress this year has largely broken its recent routine of allowing important tax incentives to expire with the start of each new year, only to retroactively reinstate those provisions as year-end approaches—leaving taxpayers during the interim on tenterhooks, guessing what tax laws they will be subject to.

 » Read more about: BONUS DEPRECIATION AND ENHANCED §179 EXPENSING EXTENDED TO 2015 AND BEYOND  »

Filed Under: Aircraft Deductions, Aircraft Income Tax, Front Page Tagged With: 50% bonus depreciation, aircraft bonus depreciation, aircraft depreciation, aircraft tax, aviation tax, bonus depreciation, section 179, section 179 deduction

IRS PASSIVE ACTIVITY RULES: PROVING THE TIME DEDICATED IN YOUR BUSINESS

All tax practitioners are aware how unyielding the tax code can be to those who lack sufficient planning and learn of the law’s arcane requirements only after the fact. One recent tax court case re-affirming this lesson is Williams v. Commissioner, TC Memo 2014-158 (August 2014), where a taxpayer lost out on deductions from his aircraft business due to his failure to provide the court with sufficient proof of his day-to-day work.

 

 » Read more about: IRS PASSIVE ACTIVITY RULES: PROVING THE TIME DEDICATED IN YOUR BUSINESS  »

Filed Under: Aircraft Income Tax, Front Page, Passive Activity & Hobby Loss Tagged With: economic profit expectation, grouping activities, grouping election, pass, passive activity

UNDERSTANDING AND PLANNING FOR TAX RISKS OF OVERLAPPING LOAN GUARANTIES

When a financed aircraft is owned in a special-purpose company, which lacks assets other than the aircraft, it is typical and understandable for the financing bank to insist that, in order to extend this special-purpose company a loan to purchase the aircraft, that loan must be guarantied by another, more solvent person or company.  In fact, banks will often seek multiple, overlapping guaranties—for example, from both spouses a couple, or from an individual and another company owned by that individual. 

 » Read more about: UNDERSTANDING AND PLANNING FOR TAX RISKS OF OVERLAPPING LOAN GUARANTIES  »

Filed Under: Aircraft Income Tax, Front Page, Tax Planning Tagged With: advocate consulting, aircraft tax, aviation tax, economic profit expectation, grouping activities, hobby loss, passive activity

KEY TAX EXPOSURE AREA: PASSIVE ACTIVITY PROTECT YOURSELF WITH PROPERLY FILED ELECTIONS

A notable milestone in the cat-and-mouse game of individuals seeking to minimize tax burden and Congress making new laws to end potential shelter activity is the Passive Activity Rule, which was originally enacted as part of the Tax Reform Act of 1986, and which recent developments have brought prominently to the minds of tax advisors.  In particular, an important one-time opportunity to avoid being trapped under this rule arises from new IRS regulations issued in November 2013 due to the new net-investment income tax passed as part of the 2010 Patient Protection and Affordable Care Act (a/k/a “Obamacare”). 

 » Read more about: KEY TAX EXPOSURE AREA: PASSIVE ACTIVITY PROTECT YOURSELF WITH PROPERLY FILED ELECTIONS  »

Filed Under: Aircraft Income Tax, Front Page, Passive Activity & Hobby Loss Tagged With: aircraft tax, economic profit expectation, grouping activities, grouping election, ordinary and necessary, passive activity

TAX DEDUCTION OF BUSINESS AIRCRAFT 2014 UPDATE

Tax Depreciation of General Aviation Aircraft

Businesses throughout the country routinely make use of general aviation aircraft to provide travel and communication efficiencies that provide them with an important competitive advantage.  As part of a general Congressional approach to encourage business investments, the Tax Code allows a rapid depreciation schedule for aircraft that allows owners to fully write-off purchase/acquisition costs over a period of time (usually five year) that is far less than the economic life of an aircraft.

 » Read more about: TAX DEDUCTION OF BUSINESS AIRCRAFT 2014 UPDATE  »

Filed Under: Aircraft Deductions, Aircraft Income Tax, Front Page Tagged With: aircraft depreciation, aircraft tax, aviation tax, cirrus tax deductions, MACRS DEPRECIATION, piper depreciation

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Latest Article

Advocate Shareholder quoted as Aviation Tax Expert by the Wall Street Journal

Title: Tax Change Helps Executives Afford Pricier Planes

Author: Rachel Feintzeig – Sept. 12, 2018

Source: Wall Street Journal

The recent changes to the tax code are giving business executives a new perk: the opportunity to deduct the entirety of a corporate-jet purchase.

President Trump signed more than 100 changes to the U.S. tax code into law at the end of last year. Among them: The price of a new or used airplane purchased by a company can be a 100% write-off against its earnings.

 » Read more about: Advocate Shareholder quoted as Aviation Tax Expert by the Wall Street Journal  »

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Advocate Consulting Legal Group, PLLC. 3555 Kraft Rd. Suite 240 Naples, FL 34105 and 1300 N. Westshore Blvd. Suite 220 Tampa, FL 33607. Suzanne Meiners-Levy, Esq. (239) 213-0066. Tax Disclosure. We inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under federal tax laws, specifically including the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.Privacy Policy. Terms of Use.