Although an article in The Washington Post last month implied that the Internal Revenue Service now sanctions the extensive personal use of company aircraft by owners and employees while the company takes a full deduction for the costs of owning and operating the airplane, several aviation tax attorneys counter that it merely sheds new light on the way the IRS views such matters.
Financing, Insurance and Taxes » Taxes
Tax issues for aircraft operators.
The Internal Revenue Service recently published Revenue Procedure 2003-85, which provides inflation-adjusted items for 2004. Section 3.27 specifies the rates for 2004 for the domestic segment fee and the international arrival/departure tax, applicable for commercial air transportation.
The Rhode Island division of taxation issued a revised regulation regarding the application of a user tax to noncommercial aircraft in the state. The new regulation clarifies many of the uncertainties created by the previous emergency regulation, such as making it clear that the tax applies only to noncommercial aircraft exceeding specified operating limits within the state.
If you buy, sell or operate aircraft in Europe and have been liable to EU value added tax (VAT), a chat with Lasse Rungholm could help you to save lots of money. You will find Rungholm by a beautifully maintained Beech 18 on the ramp, which OPM Aviation Services (OPMAS) acquired a month ago and flew here from its Aarhus, Denmark headquarters to publicize the company.
As a percentage of a $200 airline ticket, taxes and fees more than tripled between 1972 and 2004 thanks to inflation, a decline in the real cost of airline travel and, more recently, increased security charges, as the government struggles to keep pace with the cost of providing the infrastructure necessary to support airline flights.
The chief of the NTSB’s French counterpart is concerned that an increasing number of aircraft are flying under flags of convenience.
A letter from the Internal Revenue Service (IRS) can cause any taxpayer’s heart to skip a beat. For aircraft operators, whose main focus of government compliance is the FAA, it can be easy to overlook the many nuances of the federal and state tax codes to ensure all taxes are being paid.
Republican lawmakers have taken steps to shelve new tax rules in the 2005 Highway Bill designed to discourage truckers from using jet fuel to avoid higher taxes on diesel fuel. Sens. Ted Stevens (R-Alaska) and Conrad Burns (R-Mont.) and Rep. Robin Hayes (R-N.C.) sent letters to U.S.
Business aviation groups welcomed a letter from the FAA to the commissioner of internal revenue asking him to suspend implementation of new fuel tax rules that would impose a “significant administrative burden” on general aviation businesses and “create financial risk for the Airport and Airways Trust Fund.” The new rules would raise the tax rate on jet fuel to that of costlier highway diesel fuel but allow aviation jet fuel buyers to apply fo
The current Standard Industry Fare Level (SIFL) rates in effect from July 1 through December 31 are: 0 to 500 sm–$0.1926; 501 to 1,500 sm–$0.1469; and more than 1,500 sm–$0.1412. The SIFL terminal charge is $35.21. SIFL fees are used to satisfy IRS requirements for operators to compute the value of non-business transportation aboard employer-supplied aircraft.