Aviation Tax & Accounting

Aviation transactions can create specialized tax and accounting questions

Aircraft acquisitions, ownership structures and operations may involve sales or use tax, depreciation, business-use substantiation, personal use, interstate operations and financial reporting. The applicable treatment depends on the facts, location and current law.

Common aviation tax and accounting areas

• Acquisition and ownership-structure planning
• Sales and use tax considerations
• Depreciation and business-use analysis
• Personal-use and fringe-benefit calculations
• Expense classification and documentation
• Financial reporting for aviation businesses

Plan before the transaction closes

Some decisions are difficult to change after title transfers or operations begin. Buyers should coordinate tax, legal, financing and operational advice early enough to evaluate the intended ownership and use.

Maintain accurate records

Flight activity, passenger purpose, business use, invoices, management charges and related expenses may need consistent documentation. Accounting systems should reflect the ownership and operating structure actually being used.

BizJetB2B provides general educational information and access to specialized providers. Tax and accounting decisions should be reviewed with qualified professionals familiar with the applicable jurisdictions and current law.