Tax Treatment of Airplane Purchases | CPE Course

BarbriSFCourseDetails

Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Tuesday, July 9, 2024
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

CPE

ALL

This course will address tax considerations for aircraft purchase and use. Purchasing an airplane has provided substantial tax savings in the past. The panel will discuss the recent IRS initiative targeting the personal use of airplanes, the final regulations under Section 274(l) for transportation and fringe benefits, and incorporating tax savings strategies relative to purchasing and operating a plane.

Faculty

Letisha D. Bivins

Principal

GKG Law, PC

Ms. Bivins received her LL.M. in taxation from the University of Florida Levin College of Law, where she was a Graduate Tax Scholar. She received her J.D. from Florida State University College of Law in 2003 and was a member of the Trial Advocacy Team. Ms. Bivins has been involved in all aspects of state and federal tax examinations, including representing clients during the examination process; negotiating with IRS and state revenue personnel to resolve tax assessments; and representing clients before the U.S. Tax Court and state courts and administrative tribunals.

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Sue Folkringa

Aviation Taxologist

Aviation CPAs

Ms. Folkringa has been the firm’s resident “Aviation Taxologist” since 2008. She is a member of the NBAA Tax Committee. Ms. Folkringa also serves on Florida Aviation Business Association’s (FABA) Board of Directors, and is a member of AOPA, EAA, AIPCA, FICPA, SFBAA and CalCPA. She is a frequent presenter at NBAA Tax Conferences and other industry events. No stranger to public speaking, Ms. Folkringa also co-presents the Wolcott & Associates aviation tax webinars which feature topics addressing financial and tax issues relative to aircraft owners, operators, financial and legal professionals.

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Description

As part of its focus on high income taxpayers, the IRS announced in February 2024 that it will audit the business and personal use of corporate aircraft. The Service admitted, "This is a complex area of tax law, and record-keeping can be challenging." The IRS Large Business and International Division is handling these highly complex audits.

In addition to personal use calculations, tax practitioners and owners must consider the hobby loss rules, sales and use tax, state income tax, and federal excise taxes. Generally, bonus depreciation rules allow an immediate deduction of up to 80 percent (2023) or 60 percent (2024) of an airplane's purchase price, adjusted for personal use. At the same time, taxpayers may no longer receive deferral benefits from like-kind exchanges of airplanes.

Listen as our panel of experts discusses the tax caveats of owning a plane. They will guide you through the current tax guidelines, minimizing upfront state and excise taxes, imputing personal use, and avoiding classification as a hobby loss.

Outline

Tax guidelines relative to operating and purchasing aircraft
Planning strategies to optimize tax benefits of airplane ownership
IRS examinations of personal use of airplanes
Federal excise tax
Final regulations under 274(l) for transportation and commuting
State income and sales and use taxes
Best practices

Benefits

The panel will cover and address these and other issues:

Structuring an aircraft purchase
Preparing for IRS audits of personal use of aircraft
Calculating travel, meals, and entertainment deductions
Sales and use tax planning
Discerning hobby loss rules
Commuting expenses

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify the tax changes that impact aircraft purchases and other business, entertainment, and travel expenses
Determine the taxpayer's "tax home" for federal tax purposes
Recognize the changes to business entertainment deductions, which could diminish the business value of owning aircraft
Establish whether the costs of flights are deductible
Ascertain the extent to which state sales and income taxes impact the business ownership of aircraft

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.