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Tax Issues for Airplane Purchases: Planning Strategies, Complexities Under Current Tax Law

Recording of a 90-minute premium CLE/CPE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
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Conducted on Thursday, February 23, 2023

Recorded event now available

or call 1-800-926-7926

This CLE/CPE course will outline guidance to tax attorneys and advisers on the applicable tax rules and key considerations for business aircraft purchases and ownership. The panel will discuss available planning options for purchases and ownership, reduced or eliminated tax deductions, and opportunities for tax savings, federal air transportation, and fuel excise taxes.

Description

The purchase and ownership of business aircraft come with significant federal, state, and local tax implications and offer opportunities for optimum tax benefits with careful planning. Tax attorneys and advisers must recognize the impact of key tax provisions on business airplane purchases and ownership and implement tax planning techniques to ensure the best results for taxpayers.

The bonus depreciation rules allow an immediate deduction of up to 100 percent of the purchase price of a new or used airplane. However, taxpayers will no longer receive income tax deferral benefits from like-kind exchanges of aircraft. Also, business entertainment use of an aircraft is no longer deductible, which could potentially diminish the business value of owning an airplane. Current owners or potential buyers of business use airplanes, and their tax counsel, must wade through the numerous complexities under current tax law to determine their impact on business ownership of an aircraft.

In addition, tax counsel and owners must consider the hobby loss rules, personal use calculations, and federal excise taxes, along with many other federal tax issues.

Listen as our panel of experts discusses the tax considerations of owning an airplane. The panel will offer strategies for minimizing upfront state and excise taxes and ongoing concerns, including imputing personal use and avoiding classification as a hobby loss.

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Outline

  1. Tax treatment of aircraft ownership under current tax law
  2. Key planning techniques to maximize tax benefits
  3. Application of the federal fuel and air transportation excise taxes

Benefits

The panel will review these and other key issues:

  • What are the key considerations in structuring an aircraft purchase?
  • What are the most effective methods in calculating travel, meals, and entertainment deductions?
  • What are the hobby loss rules and traps to avoid?

Faculty

Alston, Thomas
Thomas A. Alston
President and CEO
Aero & Marine Tax Professionals

As a California Sales & Use Tax Expert, Mr. Alston specializes in helping his clients avoid sales & use tax...  |  Read More

Mandarino, Joseph
Joseph C. Mandarino
Partner
Smith Gambrell & Russell

Mandarino is a Partner in the Tax Practice of Smith, Gambrell & Russell, LLP.  His practice focuses on...  |  Read More

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Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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