On July 4, 2025, H.R. 1, the One Big Beautiful Bill Act (OBBBA), became law, which increased and permanently extended “bonus depreciation.” Specifically, for private aircraft used in a “trade or business” and meeting certain other requirements, taxpayers can now deduct 100% of the cost basis of a business aircraft for the tax year that [...]
On May 20, 2025, Washington Governor Bob Ferguson signed a bill (ESSB 5801) imposing a 10% luxury tax on the sale and use of private aircraft to the extent the value of the aircraft exceeds $500,000. The effective date of the aircraft luxury tax is not until April 1, 2026, but private aircraft owners that [...]
In a news release dated March 28, 2025, the FAA announced that it has implemented new privacy protections for aircraft owners. Section 803 of the FAA Reauthorization Act of 2024 added Section 44114 to Title 49 of the U.S. Code, which mandates the FAA to establish a process for aircraft owners and operators to withhold [...]
The National Business Aviation Association (“NBAA”) held its annual Business Aviation Convention and Exhibition in Las Vegas, Nevada in October. The event was preceded by the 2024 Tax, Regulatory & Risk Management Conference, a two-day event, which had more than 300 attendees (a record). Many attendees were eager to hear details on the status of [...]
The National Business Aviation Association (“NBAA”) held its annual Business Aviation Convention and Exhibition in Las Vegas, Nevada in October. The event was preceded by the 2024 Tax, Regulatory & Risk Management Conference, a two-day event, which had more than 300 attendees (a record). One particular topic weighed heavily on the minds of the conference [...]
On September 2, 2024, the U.S. Department of Justice announced that it had seized a Dassault Falcon 900EX business jet in the Dominican Republic, that allegedly was owned and operated for the benefit of President Maduro of the county of Venezuela. Citing the Executive Order signed in 2015 by President Obama, which blocked assets and [...]
If you spend enough time in the aviation industry in nearly any capacity, from being a pilot, mechanic, or flight attendant, to running an airline, management company, flight department or airport, contact with the FAA is nearly inevitable. Most of these interactions are routine, however, on occasion, members of the industry may find themselves, their [...]
The National Business Aviation Association held its annual one-day tax seminar in Dallas, Texas, in mid-May. The program schedule included panels on FAA regulations, various tax issues, personal use of business aircraft, depreciation, and sustainable aviation fuel. This year’s event had two additional segments – “Carriage of Political Candidates” and “Corporate Transparency Act [CTA] Impact [...]
Major federal and state elections are happening in 2024—and candidates for public office will need to travel to campaign, raise funds and deliver stump speeches. Accordingly, owners and operators of private aircraft might be asked to carry political candidates or their campaign staff. Paying for a candidate’s flight raises competing compliance issues among federal and [...]
In a recent news release, the IRS announced plans to begin “dozens” of audits on aircraft use by large corporations and high-income taxpayers to determine whether expenses for private aircraft are being properly allocated between business and personal use. “Personal use of corporate jets and other aircraft by executives and others have tax implications, and [...]
