Category: Aviation News

Gulfstream Jet Head On Aviation Attorney

Bonus Depreciation For 2015 Aircraft

Bonus Depreciation For 2015 Aircraft

Gulfstream Jet
Bonus depreciation may still apply

I read an interesting article in Aviation Week about the resilience of the market for the largest business jets.  Their resilience as the aircraft of choice for ultra high net worth individuals, governments and corporations is no surprise.  One reason for this were the long production cycles for these aircraft.  New Gulfstream business jets have always been “built to order” and can take a year or more to complete.  The planes on the assembly line during the crash years of 2008-2009 had been on order for some time before, and there was a healthy backlog of others waiting in line at that time.

The tax benefits for these buyers remains as well.  Aircraft bonus depreciation deductions, which have largely been phased out going forward still applies to certain large business aircraft placed in service prior to January 1, 2015.  This can occur in one of two scenarios, first, if the aircraft is considered “long production property”, or second, if the aircraft otherwise met the requirements for 50% bonus depreciation, part of which required that there was a written binding contract in place for the plane prior to 2014.

Contact me for an analysis of your tax savings.

Ari Good, JD LLM, an aviation tax lawyer is the shareholder of Good Attorneys at Law, P.A. He graduated from the DePaul University College of Law in 1997 and obtained his L.L.M. in Taxation from the University of Florida in 2005. He has helped hundreds of clients to defend themselves against the tax authorities and negotiate their liabilities, and worked with aircraft buyers, sellers and operators in complex tax transactions.

Call us at (786) 235-8371 for detailed information.

Updated Florida Form to Report Sales and Use tax on Aircraft

Florida Introduces New Form to Report Sales and Use Tax on Aircraft

The Florida Department of Revenue (FL DOR) has updated its reporting form on the sale and use of aircraft in Florida. Form DR-15AIR (Sales and Use Tax Return for Aircraft) replaces Form DR-42A (Ownership Declaration and Sales and Use Tax Report on Aircraft). The new form provides explicit guidance on when to report taxes on the sale and use of aircraft in Florida.

When Form DR-15AIR Should be Used.

An individual should report sales and use tax on the purchase of aircraft when they don’t pay Florida’s sales tax to the seller. Form DR-15AIR clarifies the three (3) situations when an individual should instead pay a 6% “use” tax:

1.  An individual purchases an aircraft from a person who is not a registered aircraft dealer and the sale or delivery of the aircraft occurs in Florida;

2.  An individual purchases an aircraft in another state, territory of the United States, or District of Columbia and is brought into Florida within six months of the purchase date; or

3.  An individual purchases an aircraft in a foreign country and is brought into Florida at any time.

This use tax is in addition to any county discretionary sales surtax. The discretionary sales tax applies to the first $5,000 of the purchase price and rates vary by county.

When Sales and Use Tax is Due.

Florida Sales and Use Tax
. Taxes Not Included

Florida’s use tax is technically due when an individual brings an aircraft into Florida for use or storage. The corresponding tax returns and tax payments, however, are due only on the 1st day of the month after the actual month when:

1.  The airaft was purchased in Florida;

2.  The aircraft was delivered to a Florida location; or

3.  The aircraft enters Florida for use or storage.

The tax returns and tax payments are late if coming after the 20th in the month they are due. Late returns and payments are penalized a minimum of $50 or 10% of the amount due, whichever is less. Interest is dues on late payments as well.

Exceptions to Sales and Use Tax.

Exceptions to Florida’s sales and use tax on aircraft continue to apply, including:

1.  The value of an aircraft, boat, mobile home, or motor vehicle an individual trades in reduces the taxable purchase amount. The person accepting the trade in and selling the aircraft must be the same.

2.  An individual removes an aircraft purchased in Florida from the state within 10 days after the date of purchase, or 20 days after completion of repairs or alterations.

3.  A credit for taxes pad in another state, territory of the U.S., or Washington D.C. No credit is available for taxes paid in another country.

4.  An exemption from the tax for non-residents of Florida when their aircraft enter and remain in Florida for 20 days or less during the six-month period after aircraft purchase. This exemption also applies to non-resident owned aircraft that enter Florida for the purposes of flight training, repairs, alterations, refitting, or modification.

Ari Good, JD LLM, a tax, aviation and entertainment lawyer, is the Shareholder of Good Attorneys At Law, P.A. He graduated from the DePaul University College of Law in 1997 and received his LL.M. in Taxation from the University of Florida.

Contact us toll free at (877) 771-1131 or by email to

Sales and Use Tax Exemption Extended For Labor and Equipment Used in the Repair and Maintenance of Certain Aircraft

TIP # 13A01-07
DATE ISSUED: June 10, 2013

Effective May 20, 2013, the sales and use tax exemption for replacement engines, parts, equipment, and labor used in or for the maintenance or repair of rotary wing aircraft (i.e. helicopters) was expanded to include aircraft that exceed 2,000 pounds in maximum certified takeoff weight. Previously, the exemption for labor charges was limited to rotary wing aircraft that exceed 10,000 pounds in maximum certified takeoff weight. The exemption for replacement engines, parts, and equipment was limited to rotary wing aircraft that exceed 10,300 pounds in maximum certified takeoff weight.

Dealers who make tax-exempt charges for replacement engines, parts, equipment, and labor used in or for the maintenance or repair of aircraft over 2,000 pounds are required to document the Federal Aviation Administration registration number (“N-number”) and the maximum certified takeoff weight of the eligible aircraft on the bill of sale, invoice, or other tangible evidence of sale.

Current exemptions for qualified and fixed wing aircraft are unchanged. Replacement engines, parts, equipment, and labor used in or for the maintenance or repair of fixed wing aircraft with a maximum certified takeoff weight of more than 2,000 pounds remain exempt.

References:  Section 4, Chapter 2013-42, Laws of Florida; Sections 212.02(33), 212.08(7)(ee) and (rr), and 212.0801, Florida Statutes (2012)

For More Information

This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For forms and other information, visit our Internet site at or call Taxpayer Services, 8:00 a.m. to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671.

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, FL 32399-0112.

IRS Suspends Aircraft Management Tax Assessments

The Internal Revenue Service (IRS) is suspending tax assessments applied to aircraft management companies during federal exercise tax (FET) audits while it develops additional guidance for auditing aircraft management operations.

The suspension is the result of government-industry collaboration since 2008, when the agency released an audit technique guide, and began assessing FET
on a wide variety of non-commercial flight operations. These assessments included FET on a “wide variety of non-commercial flight operations,” including flights
under Part 91 of the Federal Aviation Regulations, according to the National Business Aviation Association (NBAA).

IRS’ suspension of the audits comes following a meeting between the agency and NBAA, along with officials from the National Air Transportation Association (NATA) last week to discuss a possible suspension.

“Since 2008, NBAA has been diligently working with senior officials at the IRS to address significant industry concerns about the applicability of FET to management companies,” said NBAA President Ed Bolen. “Today’s announcement that IRS will suspend any potential assessments on these audits until the work to develop formal guidance is complete.”

The agency will still be completing open audits, though the aircraft management companies will not be subject to the tax assessments while the additional guidance is being developed. IRS is expected to release additional guidance for aircraft management companies in June.

By Woodrow Bellamy III

SIFL Rates Rise for the Fourth Consecutive Term

SIFL Rates
SIFL rates on the rise again.

SIFL rates are important numbers used to calculate the taxable income you receive when taking a personal flight on employer provided aircraft as a fringe benefit.  The U.S. Department of Transportation recently released new SIFL rates for the 1st half of 2013 and there was an increase of 3.33% overall.  This marks the fourth consecutive term that SIFL rates have significantly increased, with a total hike of over 17% since July of 2011.  The following table shows these new numbers:



SIFL Rates for 1st Half of 2013

Time Period of Flight 01/01/2013 – 06/30/2013
Miles: 0 – 500 –> .2655
Miles: 501 – 1500 –> .2024
Miles: > 1500 –> .1946
Terminal Charge –> $48.54

Aircraft Multiplier

Weight Class

Control Employee

Non-Control Employee

< 6,000 lbs. 62.5% 15.6%
6,001 – 10,000 lbs. 125% 23.4%
10,001 – 25,000 lbs. 300% 31.3%
> 25, 000 lbs. 400% 31.3%

Crunching these numbers, a control employee would have a $598.59 taxable fringe benefit for a 750-mile flight, a 3.23% increase from the prior term.

If you’re unfamiliar with SIFL rates and whether they may apply to you, please read my earlier blog post.

–          Ari Good

Ari Good, JD LL.M. is the Shareholder of Good Attorneys At Law, P.A.  Mr. Good received his BA, With Distinction, from the University of Michigan in 1993, his law degree from the DePaul University College of Law in 1997, and his LL.M. (Masters of Law in Taxation) from the University of Florida.  A long-time supporter of the general aviation community, Mr. Good serves aircraft buyers, sellers, dealers, brokers, flight schools and commercial operators worldwide in contractual, operational and tax matters. The firm’s services include federal income tax, state sales and use tax and excise tax planning, and defending both state and federal tax audits.  Mr. Good is a frequent speaker in aviation tax law and a proud member of The Florida Aviation Trades Association and NBAA.