Category: Blog Post

Whether a flight triggers the 7.5% federal excise tax turns on a single question: Is it commercial transportation for hire, or noncommercial use of your own aircraft? Charters carry the tax plus a per-segment fee, while private flights on your own aircraft are taxed instead through higher fuel...

Under the federal hobby loss rule, the IRS can disallow deductions from an aircraft or charter operation it decides is not run for profit. Businesslike records and a genuine profit motive are your strongest protection. The audit letter lands in your mailbox two years after...

The bonus depreciation phase-down was reversed. For aircraft acquired and placed in service after January 19, 2025, you can now deduct 100% of the cost in year one, but only if the aircraft is used more than 50% for qualified business use. Tax planning for...

To claim accelerated or bonus depreciation on an aircraft, federal tax law requires that more than 50% of its total use be qualified business use. Fall to 50% or below, and you lose accelerated depreciation going forward and may have to give back deductions you already claimed.

Fractional aircraft ownership programs sit at the intersection of FAA Part 91 Subpart K, federal excise tax, federal depreciation, and a special $300 Florida sales tax cap. The reporting and compliance picture is unique and very different from charter or whole-aircraft ownership. Fractional aircraft ownership...

Hangar fees are a fixed operating cost the IRS treats as part of the total expense pool subject to allocation between business, personal, entertainment, and commuting use. Florida adds a 6% sales tax on top of the rent itself. Hangar fees rarely make headlines, but...

Trusts are expressly barred from the Section 179 election, worth up to $2,500,000 in immediate deductions for 2025. For aircraft owners focused on deductions, entity selection is the first decision that matters. Should you hold your aircraft in an LLC or a trust? Both provide...

If the IRS challenges your aircraft’s claimed business use percentage, it is crucial to provide detailed, contemporaneous documentation that supports how the aircraft was used. The burden is generally on the taxpayer to substantiate business versus personal use. In Florida and nationwide, aircraft owners who cannot produce accurate flight logs, expense allocations,...

A six-figure tax bill can turn your dream aircraft upgrade into a financial nightmare. Federal depreciation recapture and Florida sales tax both apply to trade-ins, and without proper planning, these costs catch many aircraft owners off guard. You’ve found the perfect aircraft upgrade, negotiated a...

The IRS requires heightened substantiation for aircraft expenses. Inadequate records can result in denied deductions and depreciation recapture. Aircraft ownership offers significant tax benefits, but the IRS subjects these deductions to heightened scrutiny and documentation requirements. Inadequate records can result in denied deductions, recaptured depreciation,...