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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.

PHENOM 300

To Maximize Deductions The Taxpayer Must Place Aircraft in Service in 2013

Current tax law provides for both bonus depreciation and an enhanced expensing election available to new aircraft purchasers. Fifty percent (50%) bonus depreciation is available for all new aircraft, including fractional interest, that are used primarily for business. The enhanced expensing election of $500,000 applies to new or used aircraft placed in service by “qualifying small business” taxpayers. A qualifying small business is one that invests less than $2,000,000 in total equipment purchases during the year.

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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.