Aviation Tax Planning in 2021

As we find ourselves in the first quarter of 2021, many private companies and individuals operating general aviation aircraft, or considering adding general aviation aircraft to our business operations, find ourselves uncertain regarding the year ahead. With clear political change in Washington, coupled with fewer conferences and face-to-face meetings, the uncertainty of 2020 maintains a cloud over early 2021 planning. It is essential to remember that general aviation aircraft continue to serve a vital role in growing and maintaining business operations in challenging times,

A Powerful Aircraft Purchase Incentive in the CARES Act

By: Suzanne Meiners-Levy

Understanding the Value of Equipment Expensing and Carryback Net Operating Losses

In uncertain times, businesses and individuals often delay large purchases and investments they had long anticipated, and that will ultimately serve the long-term interest of the company, for fear of uncertain outcomes or with a mistaken belief that it is not the right time. In our practice, where we interact with over 1,500 general aviation owners and operators on an on-going basis,

Overlooked & Misunderstood – The Basics of State Aircraft Taxes

By: Letisha D. Bivins

State taxes are often overlooked in general aviation. Whether you use your plane for business or just for personal pleasure, there are state taxes that may apply to your plane in one or more forms. Forty-four states impose sales and use tax on planes. In addition, 42 states impose annual personal property tax and/or registration tax on planes.

I often hear, “I took delivery in Oregon,

Five TCJA Tips for Year-End Closings in 2019

As we approach the last quarter of 2019, market indicators support the possibility of a very strong year-end in aircraft transactions. If you have not purchased or sold an aircraft since the passage of the Tax Cuts and Jobs Act (TCJA) of late 2017, a review of how changes in the tax law may impact transactions for the balance of the year is in order. Similarly, if you are contemplating selling your aircraft, upgrading, bringing in a partner,

Tax Reform 201: Aircraft Acquisition and the “Leasing Trap” in a World of 100% Bonus Depreciation

The 2017 Tax Cuts and Jobs Act provides a wonderful opportunity for business aircraft purchasers of both new and pre-owned aircraft to take 100% bonus deprecation on the aircraft purchase price in the year of acquisition pursuant to Section 168(k), provided that the aircraft is placed in service for business use in that year. This purchase incentive, designed to spur economic activity in equipment sales, can serve as a valuable tool to free up capital and encourage business investment and activity.