Financing, Insurance and Taxes » Taxes

Tax issues for aircraft operators.

September 23, 2010 - 11:27am

General aviation groups today hailed the passage of a bonus depreciation bill that will allow for accelerated depreciation of business aircraft. The Senate passed its version shortly after legislators returned from their summer recess last week. The House of Representatives already passed similar legislation in June, but had to vote on the Senate version since it contained minor differences.

July 28, 2008 - 11:52am

A new federal tax-cut law contains an increase in the bonus depreciation percentage from 30 percent to 50 percent in the first-year allowance for the purchase of capital goods, including new aircraft. The rate will be available for any new aircraft–regardless of value if used under Part 91–acquired after May 5, 2003, and before Jan. 1, 2005. The aircraft must be placed in service before Jan. 1, 2006.

June 2, 2008 - 8:20am

The new Isle of Man aircraft registry could be a possible safe haven for N-registered business aircraft based in Europe. European civil aviation authorities, such as those of France and the UK, have indicated that they are unwilling to tolerate the situation in which aircraft that spend most of their time in Europe remain on the U.S.

May 21, 2008 - 11:10am

Business aviation operations in Arizona stand to benefit from new legislation that returns certain aviation tax revenues to the state’s airport improvement programs. Arizona governor Jane Dee Hull signed SB1251 into law on May 2, authorizing the deposit of 100 percent of flight property tax revenues into the state aviation fund starting in fiscal year 2004.

May 20, 2008 - 12:51am

Value Added Tax (VAT) and import duties for aircraft currently stand at zero percent in Denmark. This allows international operators to escape tax by basing their aircraft in Denmark. However, zero-rated VAT is in contradiction with European law and pressure is mounting on Danish legislators to adjust their taxes upward.

May 15, 2008 - 7:04am

Valued-added taxes (VAT) may now amount to 25 percent of a jet fuel purchase in some parts of Europe. But that’s the bad news. The good news is that in most cases this tax may be refunded, as may VAT levied on many other business-
related goods and service expenses incurred by company employees traveling abroad.

May 15, 2008 - 5:01am

Under a provision of President Bush’s economic stimulus package, purchasers of new aircraft can take a first-year depreciation deduction of 30 percent for the taxable year in which it is placed in service. H.R.3090, “The Job Creation and Worker Assistance Bill of 2002,” included a 30-percent bonus depreciation provision on the value of certain capital assets for 36 months.

May 6, 2008 - 11:26am

Currently, 30 dedicated Russian business aviation companies operate about 50 business jets, mostly converted Tupolev Tu-134s, Yakovlev Yak-40s and Yak-42s and Antonov An-74s. The Russian fleet of VIP-configured jets, some of which are in service with airlines, includes between 70 and 80 aircraft.

February 6, 2008 - 4:37am

Conklin & de Decker last month released the 2008 State Tax Guide for General Aviation. The guide contains the latest taxes and fees for all 50 states, as well as sales and use tax applicable to aircraft sales, ownership, lease, parts and labor.

February 6, 2008 - 4:37am

Conklin & de Decker last month released the 2008 State Tax Guide for General Aviation. The guide contains the latest taxes and fees for all 50 states, as well as sales and use tax applicable to aircraft sales, ownership, lease, parts and labor.

 
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