If your international commercial transaction involves a business aircraft, particularly where the buyer will register the aircraft in a different country than the one in which the seller had it registered, you have a lot of work in front of you. Cross-border aircraft transactions involve many hurdles that can be difficult to identify, and even harder to get over.
Avoid A Flight Department Company
December 3rd, 2012 by
Flight department companies are entities that operate aircraft but have no other business purpose. The use of these entities often has the opposite result, including exposure to FAA civil penalties, IRS excise taxes, and the possibility of the denial of coverage by an insurance company should a claim arise. Click here to download full article.
Sharing Aircraft Under FAR Part 91
November 3rd, 2012 by
For U.S. Operators, charging someone for a ride in the company jet is a subject thick with claims and counterclaims, ignorance and outright bad behavior. The arguments are old, but some of the consequences are new. Today, the IRS may be more likely than the FAA to punish practitioners of any “Part 134 1/2″. Click here to download full article.
Heliport Approval
October 3rd, 2012 by
Developing a heliport doesn’t have to be a daunting task. Click here to download full article.
Buying and Flying Corporate Aircraft
September 4th, 2012 by
Looking for a replacement aircraft, and the right jet appears at the right prices? The next thing you know, someone has placed an offer letter in front of you and says it’s time to sign, or you could lose this great deal! Is it a great deal? How do you know? We know, you just want to fly - and thinking about all of the legal jargon just gives you a headache. This article will hopefully help you navigate the minefield of aircraft acquisition and ownership. Click here to download full article
IRS Issues Final Regs on Employee Entertainment Use
August 9th, 2012 by
The IRS finally issued regulations interpreting the provisions for disallowing deductions attributed to aircraft used for entertainment. The final regulation generally follows the proposed regulations, but there are new provisions.
Bona Fide Security Programs
August 8th, 2012 by
The security provided by a company’s private jet can be as important as its utility. Since corporations generally take tax deductions for security expenses, the IRS created a tough, but realistic, standard for establishing that a bona fide security program exists.
An Analysis of the Recent IRS Chief Counsel Advice Asserting that Management Companies are Subject to Transportation Tax
April 6th, 2012 by
On March 9, the IRS Office of Chief Counsel released a Chief Counsel Advice (CCA) which concluded that an aircraft owner who hired a management company to help operate and maintain the aircraft owed transportation tax on the amounts paid to the management company for management and pilot services. This advice is contrary to the official position of the IRS. Although the CCA does not represent the official opinion of the IRS, there has been a growing tendency for IRS auditors to question management company arrangements, and the CCA may exacerbate the problem. In the meantime, management companies and their customers should review their agreements to make sure that they are in compliance with current IRS and FAA requirements.