Thursday, July 13, 2023
1:00pm-2:50pm EDT, 10:00am-11:50am PDT
This course will address tax considerations for aircraft purchase and use. Purchasing an airplane has provided substantial tax savings in the past. While tax reform reduced or eliminated some deductions, others have increased significantly, leaving tax professionals and owners with much to consider. The panel will discuss final regulations under Section 274(l) for transportation and fringe benefits and incorporate tax savings strategies relative to purchasing a plane.
Bonus depreciation rules allow an immediate 100 percent deduction of a new or used airplane’s purchase price. At the same time, taxpayers may no longer receive deferral benefits from like-kind exchanges of airplanes.
Further, business entertainment is no longer deductible, which could diminish the business value of owning an airplane. Current owners or potential buyers of business use airplanes–and their tax advisers–must wade through the numerous changes and complexities of the tax act to determine their impact on business ownership of aircraft.
Tax practitioners and owners need to consider the hobby loss rules, personal use calculations, and federal excise taxes; still, these are only a few of the federal tax issues to consider. State sales and use tax and state income tax differences must also be addressed.
Listen as our panel of experts discusses the tax caveats of owning a plane. They will guide you through the recent tax changes, minimizing upfront state and excise taxes, imputing personal use, and avoiding classification as a hobby loss.
Changes made by 2017 tax reform
Planning strategies to optimize tax benefits of airplane ownership
Federal excise tax
Final regulations under 274(l) for transportation and commuting
State income and sales and use taxes
The panel will cover and address these and other issues:
Structuring an aircraft purchase
Calculating travel, meals, and entertainment deductions
Sales and use tax planning
Discerning hobby loss rules
CARES Act changes that may impact aircraft acquisition