NBAA Calls IRS Rulings a Victory For BizAv | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-05.06.24

Airborne-NextGen-04.30.24

Airborne-Unlimited-05.01.24 Airborne-AffordableFlyers--05.02.24

Airborne-Unlimited-05.03.24

Tue, Jan 19, 2021

NBAA Calls IRS Rulings a Victory For BizAv

Victory for Business Aviation in Final IRS Rules for Management Companies

NBAA's requests for favorable inclusions in the Tax Cuts and Jobs Act (TCJA), apear to have been answeered... and the association seems happy with what heas resulted to this point -- and will 'provide certainty and clarity for aircraft management companies and owners regarding their federal excise tax (FET) obligations.'

In 2017, lawmakers introduced key tax reforms, such as 100% bonus depreciation for new and pre-owned property, including business aircraft. The TCJA also made clear the 7.5% FET on commercial air transportation is not due when owners conduct flights on their own aircraft with a management company’s assistance. The legislative provision explained that such flights are subject to the non-commercial fuel tax and exempt from the percentage tax ending significant uncertainty that had devastating impacts for aircraft management companies. 

In its final rule, the IRS adopted several significant changes suggested by NBAA to eliminate potential confusion and provide clear standards for taxpayers and the government. For example, the rule affirms that owner trust arrangements, used to register thousands of business aircraft for regulatory compliance purposes, are eligible for the FET exemption.

Also, at NBAA’s urging, the final regulations abandon a proposal to expand the definition of leases disqualified from the FET exemption, which would have severely limited the exemption’s application to many common aircraft ownership structures.

Also, in response to NBAA’s comments, the final rule eliminates a complicated allocation method that would have been required when owners take flights on a substitute aircraft. Instead, only the fair market value of those specific charter flights involving substitute aircraft will generally be subject to FET. The final rule also clarifies that aircraft owners qualify for the FET exemption regardless of whether they conduct flights on their own aircraft under Part 91 or Part 135 of the Federal Aviation Regulations.

FMI: www.nbaa.org

Advertisement

More News

ANN's Daily Aero-Term (05.07.24): Hazardous Weather Information

Hazardous Weather Information Summary of significant meteorological information (SIGMET/WS), convective significant meteorological information (convective SIGMET/WST), urgent pilot>[...]

ANN's Daily Aero-Linx (05.07.24)

Aero Linx: The T-6 Racing Association The T-6 Racing Association is all about T-6‘s and racing. Our mission is to bring great racing to our fans in Reno and other venues wher>[...]

Airborne 05.01.24: WACO Kitchen, FAA Reauthorization, World Skydiving Day

Also: Electra Aero, AMO-CBP v Smugglers, Naval King Airs, Boeing Deal To the surprise of everyone involved, Waco Kitchen shut down both airport operations with little warning and h>[...]

Airborne Affordable Flyers 05.02.24: Bobby Bailey, SPRG Report Cards, Skydive!

Also: WACO Kitchen Bails, French SportPlane Mfr to FL, Dynon-Advance Flight Systems, Innovation Preview Bobby Bailey, a bit of a fixture in sport aviation circles for his work with>[...]

Airborne 05.03.24: Advanced Powerplant Solutions, PRA Runway Woes, Drone Racing

Also: Virgin Galactic, B-29 Doc to Allentown, Erickson Fire-Fighters Bought, FAA Reauthorization After dealing with a big letdown after the unexpected decision by Skyreach to disco>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC