Tax Issues for Airplane Purchases: Planning Strategies, Complexities Under Current Tax Law
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Law
- event Date
Tuesday, August 5, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE/CPE course will outline guidance to tax attorneys and advisers on the applicable tax rules and key considerations for business aircraft purchases and ownership. The panel will discuss available planning options for purchases and ownership, reduced or eliminated tax deductions, and opportunities for tax savings, federal air transportation, and fuel excise taxes.
Mr. Beninato, III represents C-suite executives, high net worth individuals, and other aviation industry businesses in negotiating, structuring, and closing tax efficient and FAA compliant acquisitions, leases, and dispositions of large long-range business aircraft and helicopters, as well as advising clients on developing aircraft ownership and operating structure alternatives to ensure compliance with FAA regulations, maximize ownership/operating deductions, and minimize likelihood of future audits. He is an active committee member of the NBAA Regulatory Issues Advisory Group.
Mr. Lapayowker devotes his law practice to corporate aircraft transactions. He counsels corporate and individual clients, foreign and domestic, on issues relating to the acquisition, leasing, registration and financing of new and pre-owned jet aircraft (including fractional aircraft). Mr. Lapayowker counsels on a wide variety of aviation matters, including implementing tax efficient structures, related FAA and DOT regulatory matters, regulatory evaluation of operations, aircraft management arrangements, personal use issues and compensation-related SEC issues in connection with the use of business aircraft by public companies. He has excellent working relationships with major aircraft manufacturers which facilitates his ability to get transactions accomplished efficiently.
The purchase and ownership of business aircraft come with significant federal, state, and local tax implications and offer opportunities for optimum tax benefits with careful planning. Tax attorneys and advisers must recognize the impact of key tax provisions on business airplane purchases and ownership and implement tax planning techniques to ensure the best results for taxpayers.
The bonus depreciation rules allow an immediate deduction of up to 100 percent of the purchase price of a new or used airplane. However, taxpayers no longer receive income tax deferral benefits from like-kind exchanges of aircraft. Also, business entertainment use of an aircraft is no longer deductible, which could potentially diminish the business value of owning an airplane. Current owners or potential buyers of business use airplanes and their tax counsel must wade through the numerous complexities under current tax law to determine their impact on business ownership of an aircraft.
In addition, tax counsel and owners must consider the hobby loss rules, personal use calculations, and federal excise taxes, along with many other federal tax issues.
Listen as our panel of experts discusses the tax considerations of owning an airplane. The panel will offer strategies for minimizing upfront state and excise taxes and ongoing concerns, including imputing personal use and avoiding classification as a hobby loss.
I. Tax treatment of aircraft ownership under current tax law
II. Key planning techniques to maximize tax benefits
III. Application of the federal fuel and air transportation excise taxes
The panel will review these and other key issues:
- What are the key considerations in structuring an aircraft purchase?
- What are the most effective methods for calculating travel, meals, and entertainment deductions?
- What are the hobby loss rules and traps to avoid?
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