Placing an aircraft into a charter program is an excellent option to offset operating costs. With proper tax planning, a late year acquisition in 2020 can allow taxpayers to take full advantage of 100% bonus depreciation as well as the financial benefits of charter revenues and professional management. Additionally, the CARES Act provides the opportunity to carry back net operating losses from 2020 to tax year 2015 for taxpayers meeting certain criteria. ATC works with clients acquiring business aircraft from around the country. We collaborate with our client’s advisors to formulate an ownership plan that will comply with IRS regulations, state sales and use tax rules, and FAA Regulations compliance.
Aviation Tax Consultants (ATC) assists aircraft purchasers in acquiring aircraft in a tax efficient manner. Our services include the elimination or reduction of sales tax at the time of purchase, maximizing income tax savings, controlling the cost of personal use of the aircraft, complying with passive activity loss, hobby loss and related party leasing rules and Federal Aviation Regulations. Cooperation with client’s current tax and legal advisors is welcome and encouraged.