Corporate Jet Investor’s Post

Every US state has its own combination of sales and use taxes, property taxes, and sometimes other surcharges it assesses on business aircraft based in, or even just flying to, the state. So how do you know where to arrange delivery of an aircraft to make best use of these?   Christian Kjelgaard asks Daniel Cheung, Aviation Tax Consultants and Scott Burgess, Aviation Legal Group...   - Cheung: 80% of the tax planning is based on IRS requirements. These requirements should be a more immediate concern for the buyer’s purchase advisory team than compliance with FAA regulations, because compliance is ongoing but the tax payment is one-time.   - Burgess: When negotiating a business aircraft purchase, an important part of the planning is to look at where the sale will be consummated, to make sure the point of delivery is somewhere which either has an exemption, or doesn’t have sales and use taxes.   - Cheung: The key to the planning is ownership structure. Who owns the aircraft is the key in terms of getting the bonus depreciation rights which can be offset against tax liability, and the corporate structure of the client will determine the structure of the ownership of the aircraft.   - Burgess: Most US states and some counties, municipalities and cities, effectively as sub-divisions of state governments, have [their own levels of] sales tax and use tax, and some have property tax.   Read more on AvBuyer here: https://lnkd.in/e7YsscNN     #aviationtax #aircrafttax #salesandusetax #taxplanning #businessaviation #businessjets #aircraftownership #privateaviation #privatejets #corporateaviation #corporatejet #corporatetax

Every US state has its own combination of sales and use taxes, property taxes, and sometimes other surcharges it assesses on business aircraft based in, or even just flying to, the state. So how do you know where to arrange delivery of an aircraft to make best use of these? Christian Kjelgaard asks Daniel Cheung, Aviation Tax Consultants and Scott Burgess, Aviation Legal Group... - Cheung: 80% of the tax planning is based on IRS requirements. These requirements should be a more immediate concern for the buyer’s purchase advisory team than compliance with FAA regulations, because compliance is ongoing but the tax payment is one-time. - Burgess: When negotiating a business aircraft purchase, an important part of the planning is to look at where the sale will be consummated, to make sure the point of delivery is somewhere which either has an exemption, or doesn’t have sales and use taxes. - Cheung: The key to the planning is ownership structure. Who owns the aircraft is the key in terms of getting the bonus depreciation rights which can be offset against tax liability, and the corporate structure of the client will determine the structure of the ownership of the aircraft. - Burgess: Most US states and some counties, municipalities and cities, effectively as sub-divisions of state governments, have [their own levels of] sales tax and use tax, and some have property tax. Read more on AvBuyer here: https://lnkd.in/e8ihahVn #aviationtax #aircrafttax #salesandusetax #taxplanning #businessaviation #businessjets #aircraftownership #privateaviation #privatejets #corporateaviation #corporatejet #corporatetax Matthew Harris William Shroll

Are you a corporate aircraft owner? The IRS recently announced plans to audit corporate aircraft usage, focusing on large corporations, partnerships, and high-income taxpayers. Our latest blog post explains why and what you need to know to ensure tax compliance. Read it here: https://lnkd.in/epmE2qSX   #Aviation #CorporateAircraft #IRS #TaxControversy    Jay Maples | Greg Rhodes | Emily Ellis 

On 2/21/24, the IRS announced that it will begin auditing corporate jet usage as part of its larger effort to ensure high-income groups “don’t fly under the radar” on tax responsibilities. IRS Commissioner Danny Werfel stated that: “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a complex area where IRS work has been stretched thin. With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.” Read the full article here: https://lnkd.in/eZb7Zn83 #foodmanCPAandadvisors #taxseason #privatejets #corporatejet #highincometaxpayers

The IRS has announced it will be paying more attention to business aircraft tax compliance, announcing upcoming audits of business aircraft and their use. Learn more about this upcoming initiative by the IRS here: https://lnkd.in/gj_JfrAi.

Georgia Lawmakers Seek to Tighten Rules for Film Tax Incentives #georgia #filmtaxcredits #gafilmtaxcredits #taxcredits #statecredits #incentives #tax #taxes #stateandlocaltax #statetax #multistatetax #SALT #FDSALT #FrazierDeeter #middlemarket #privateequity #fortune500 #fortune1000 #incometax #GAtax #GAtaxes #GAcredits #filmtaxincentives

On 2/21/24, the IRS announced that it will begin auditing corporate jet usage as part of its larger effort to ensure high-income groups “don’t fly under the radar” on tax responsibilities. IRS Commissioner Danny Werfel stated that: “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a complex area where IRS work has been stretched thin. With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.” Read the full article here: https://lnkd.in/eWs4i-ue #foodmanCPAandadvisors #taxseason #privatejets #corporatejet #highincometaxpayers

IRS to increase audits of corporate jet tax deductions Using Inflation Reduction Act funding and advanced analytics, the IRS has begun a “campaign” to closely examine the personal use of business aircraft more than in past years. Business aircraft owners should consider (1) auditing their previous deductions for compliance with the applicable tax laws, (2) analyzing the after-tax value of deductions against the potentially high cost and invasiveness of an audit, and (3) seeking advice from professionals involved specifically in business aviation taxes to avoid errors in deducting expenses for personal use of, and aircraft depreciation deductions pertaining to, their aircraft. See the IRS press release in this campaign at https://lnkd.in/gmQAJn98

All Hands on Deck The Florida Department of Revenue has adopted regulations (Fla. Admin. Code Ann. §§ 12AER24-5, 12AER24-6, 12AER24-7, and 12AER24-8, effective 07/01/2024) that amend sales and use tax provisions on the purchases of boats and aircraft. A nonresident purchaser of a boat or aircraft in Florida must execute an affidavit affirming that the boat or aircraft qualifies for a sales and use tax exemption. For boats of a certain size, the nonresident purchaser may apply to the selling dealer for a decal set issued by the Department to allow the boat to remain in Florida waters temporarily. Forms that allow registered boat or yacht dealers to purchase the decal sets from the Department are provided. Also, a sale of a boat and the corresponding trailer identified as a motor vehicle is deemed to occur in the county where the purchaser resides, and discretionary sales surtax is due at the rate imposed by the county where the residence address of the purchaser is located. Further, a sale of a boat and the corresponding trailer identified as a motor vehicle is taxed as a single item when sold to the same purchaser, at the same time, and included in the same invoice. State specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of tax, ask an expert here: https://lnkd.in/eMTnUw3y

RETT guidance addresses share deals and partnership exemption rule. The German tax authorities have published three decrees that provide updated guidance on the application and interpretation of the real estate transfer tax rules. The decrees focus on certain types of share transfers and the exemption rule for transactions between a partnership and its partners. #germany #RETT https://lnkd.in/e7s528Jg