Tax Planning | Advocate Consulting Legal Group, PLLC - The Aviation "TLC" Provider

How to Survive a Tax Audit of your Aircraft

First in a Series – Federal Income Tax Examinations

Introduction

There has been an increase in federal income tax audit activity for high net-worth individuals and profitable small businesses. This often extends to all business activity, including aircraft operations. Such examinations generally last for months and require education of the auditor in the business interrelationship between the aircraft and the underlying business it supports.

IRS EXPANDS AIRCRAFT TAX EXAMS – HOW SHOULD YOU PREPARE?

The Internal Revenue Service appears to be taking increased interest in aircraft owners’ income tax returns. It may be a result of bonus depreciation, enhanced expensing, or targeting high income taxpayers; but regardless of the trigger, exams appear with increasing frequency and greater depth of review.

THE LAW AND JUDICIAL PRECEDENT GENERALLY REMAINS UNCHANGED.
Of course, an aircraft is not unlike any other business tool.

AVOID AIRCRAFT DEPRECIATION RECAPTURE – CONSIDER A LIKE-KIND EXCHANGE

Aircraft Income Tax, Tax Planning

MAXIMIZING AIRCRAFT TAX SAVINGS THROUGH PLANNING

Aircraft Income Tax, Tax Planning