Jet Talk

Sharing Aircraft Under FAR Part 91
Kent S. Jackson | November 3, 2012

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 […]

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IRS Issues Final Regs on Employee Entertainment Use
Kent S. Jackson | August 9, 2012

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. Click here to download full news blast.

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An Analysis of the Recent IRS Chief Counsel Advice Asserting that Management Companies are Subject to Transportation Tax
Kent S. Jackson | April 6, 2012

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 […]

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Personal Flights in Corporate Aircraft
Kent S. Jackson | April 4, 2011

Since 1993, the FAA has prohibited executives from reimbursing their companies for personal use of company aircraft.  On December 30th, 2010, the FAA Office of Chief Counsel issued a change to Part 91.5019b)(5), the “Schwab Interpretation.”  Some, but not all personal travel by executives now meets the conditions for reimbursement. Click here to download full […]

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Saving Taxes With an Aircraft Leasing Company
Kent S. Jackson | August 14, 2009

The sales and use tax laws generally apply only to the purchase and use of property by the final consumer. To avoid taxing intermediate sales, almost all States have a resale exemption which allows resellers to purchase and use property tax-free. This exemption generally applies to lessors. Instead of paying tax on the purchase or […]

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State Taxation of “Flip” Transactions
Kent S. Jackson | February 1, 2009

More and more aircraft sales are occurring as a back-to-back sale or flip.  The basic nature of sales tax is often overlooked in flip transactions.  This neglect often results in greater tax and penalty exposure for all parties involved. Click here to download full article.

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