Wolcott & Associates, a CPA firm with a practice dedicated to the aviation industry, has released several aviation tax reports, including “Income Taxes for Aircraft Used in Business” and “Personal Use of Company Aircraft.”
Are you getting all the deductions you are entitled for the business use of your aircraft? If you own an aircraft that you use in your business or are contemplating such an acquisition, “Income Taxes for Aircraft Used in Business” will guide you through the design of the ownership structure, depreciation alternatives, tax treatment of business and personal use, rental and leasing to 135 operators, passive loss limitations, use of single-member LLCs, and much more. Filled-in tax returns illustrate how to report the various elements of income and expense for corporations, LLCs, and individual ownership. Price: $98.
“Personal Use of Company Aircraft” covers all applicable regulations for recognizing the tax effects from the non-business use of company aircraft, including the use of the Standard Industry Fare Levels (SIFL) and the Charter Rate method of imputing income. It includes a section on computing the cost limitations from the American Jobs Creation Act of 2004 and the reporting guidelines covered in IRS Notice 2005-45 for entertainment flights. Contained in the report are 14 specific strategies for dealing with new entertainment cost limitations and a section on SEC reporting. Price: $88.
Also available is “Spreadsheet Application for Calculating SIFL Benefits and Entertainment Cost Limitations,” designed to be used in conjunction with “Personal Use of Company Aircraft.” This 7-page report details how to construct and use a computer spreadsheet application for tracking SIFL benefits and American Jobs Creation Act of 2004 cost limitations for the non-business use of company aircraft. It includes formulas for calculating SIFL mileage rates, crediting cost reimbursements, and comparing the seat-mile and seat-hour formulas to arrive at the lowest possible tax liability. It details the process of using data entry screens for fast entry of flight leg data and for creating multi-aircraft or multi-employee reports. Price: $28.
For more information: Aviation-CPA.com/reports.