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

Toll Free: 888.325.1942 | info@advocatetax.com
  • Aircraft Income Tax
    • SIFL
    • 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 grouping election

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

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

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

IRS EXPANDS AIRCRAFT TAX EXAMS – HOW SHOULD YOU PREPARE?

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.

 » Read more about: IRS EXPANDS AIRCRAFT TAX EXAMS – HOW SHOULD YOU PREPARE?  »

Filed Under: Aircraft Income Tax, Tax Planning Tagged With: at risk basis, grouping activities, grouping election, hobby loss, irs audit, IRS examination, ordinary and necessary

DEFENDING YOUR AIRCRAFT DEDUCTIONS BEFORE THE IRS

Aircraft Deductions, Aircraft Income Tax

Filed Under: Aircraft Deductions Tagged With: aircraft tax, aviation tax, economic profit expectation, grouping election, hobby loss, irs audit, ordinary and necessary, passive activity

  • 1
  • 2
  • Next Page »

Latest Article

Corporate Jet Investor Town Hall – Finance, Tax and All That Jazz (Webinar Replay)

View a replay of the town hall by clicking the video above, or following the link here.

As you know, these are unprecedented times for business aviation. We invite you to join the Corporate Jet Investor Town Hall as a way of staying connected and informed during this period.

Moderated by Alasdair Whyte, co-founder Corporate Jet Investor, each week CJI will tackle a different issue or topic through the knowledge of as many expert participants as possible.

 » Read more about: Corporate Jet Investor Town Hall – Finance, Tax and All That Jazz (Webinar Replay)  »

Upcoming Events

  1. Sun ‘n Fun International Fly-In Expo

    April 13 - April 18

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.