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

Toll Free: 888.325.1942 | info@advocatetax.com
  • Aircraft Income Tax
    • SIFL
    • First Year Depreciation
    • Aircraft Income Tax Online Tools
    • Aircraft Income Tax
  • Aircraft State & Local Tax
    • Aircraft State & Local Tax Online Tools
    • Sales & Use Taxes Articles
  • Aircraft Operations & Law
    • Aircraft Operations & Law Articles
  • YouTube Library
  • Flight Logs
  • About Us
    • Our Team
    • Employment Opportunities
    • Service Agreements
    • Service Delivery – FAQ
    • Contact Us
You are here: Home / Archives for aviation tax

A New Era in Business Aviation: Highlights from the Tax Cuts and Jobs Act

After years of debate, tax reform has arrived. The late-year 2017 passage and signing of the Tax Cuts and Jobs Act (TCJA) has reshaped the business and individual tax landscape. The TCJA provides excellent tax opportunities for businesses of all sizes to invest in general aviation aircraft, but requires careful planning and review to ensure that deductions are preserved. Below you will find a few highlights of the new law, along with discussion points to consider with a trusted advisor.

 » Read more about: A New Era in Business Aviation: Highlights from the Tax Cuts and Jobs Act  »

Filed Under: Aircraft Income Tax, Aviation News, Front Page, LowerMiddle, Tax Planning Tagged With: 1031 exchange, advocate consulting, aircraft depreciation, aircraft tax, aviation tax

Tax Trap for 2011 – Failure to Elect Grouping of Aircraft Company and Operating Company

Second in a series of articles on “How to Survive an IRS Audit of your Aircraft”

 

There are many valid business reasons to separate aircraft ownership from the operating companies it serves.  These often include liability protection, ownership differences, and managerial issues to name a few. Although it is often beneficial to segregate ownership for non-tax reasons, it is important to avoid inadvertently causing the aircraft entity to be treated on a “stand-alone” basis for passive activity income tax purposes. 

 » Read more about: Tax Trap for 2011 – Failure to Elect Grouping of Aircraft Company and Operating Company  »

Filed Under: Aircraft Deductions, Aircraft Income Tax Tagged With: advocate consulting, aircraft tax, aviation tax, cirrus tax deductions, economic profit expectation, grouping activities, grouping election, hobby loss, ordinary and necessary, passive activity

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

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

FAA RULES ON RVSM OPERATIONS: IMPLICATIONS FOR MULTI-OPERATOR AIRCRAFT

On January 24, 2014, the FAA issued a new National Policy on operations in Reduced Vertical Separation Minimum (“RVSM”) airspace.  (FAA Notice N8900.250 and Revised FAA Order 8900.1.)  One significant topic addressed is that, for aircraft with multiple operators (e.g., multiple lessees of a single aircraft), each one operating in RVSM airspace must possess its own, distinct letter of authorization (“LOA”) issued by the FAA for such operations.  The policy further provides for an expedited process to obtain additional LOAs after a single LOA has been issued,

 » Read more about: FAA RULES ON RVSM OPERATIONS: IMPLICATIONS FOR MULTI-OPERATOR AIRCRAFT  »

Filed Under: Aircraft Operations & Law, FAA Issues, Front Page Tagged With: aircraft altitude rule, aviation tax, FAA, RVSM rules

  • 1
  • 2
  • 3
  • 4
  • Next Page »

Latest Article

Tax Change Helps Executives Afford Pricier Planes

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.

That is a major change.

 » Read more about: Tax Change Helps Executives Afford Pricier Planes  »

Upcoming Events

  1. NAFA’s 48th Annual Conference

    March 3 @ 8:00 am - March 6 @ 8:00 pm
  2. 2019 HAI Heli-Expo

    March 4 - March 7
  3. LPBA Winter 2019 Convention

    March 6 - March 10
  4. 2019 NBAA Houston Regional Forum

    March 14

View All Events

Contact Us

Toll Free: 888-325-1942
Email: info@advocatetax.com


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.