Fortune favors those who are prepared – especially for filing taxes. And now, according to experts, is the time for flight departments to work on their tax liability. “Maybe you need to have some more business flights in order to make sure you qualify for accelerated depreciation for example,” said CPA Sue Folkringa. “Now is the perfect time to look through those flight logs and do some planning for the next month and a half.” Also, there are new tax provisions if your aircraft was damaged by Hurricanes Harvey or Irma, said CPA Angel Houck, and out-of-pocket expenses may be deductible.
Industry experts with decades of combined real-world experience south to bring some perspective to the recent IRS announcement that the agency will “begin dozens of audits” of companies that use business aircraft, with a focus on tax policies related to non-business use of the aircraft, as well as other key considerations, during an NBAA News Hour webinar.
NBAA is questioning the Internal Revenue Service’s plan, announced this week, to “begin dozens of audits” of business aircraft use by American companies and entrepreneurs.
NBAA welcomed guidance from the U.S. Treasury Department on the fuel products eligible for the Sustainable Aviation Fuel Blender's Tax Credit under section 40B of the Internal Revenue Code.
The end of the year is often a stressful time for business aircraft operators that are grappling with tax issues, particularly if they've purchased an airplane hoping to take advantage of higher bonus depreciation rates. Aviation managers shouldn’t wait until the final weeks of the year to develop their tax strategy.