Welcome

Aircraft Owners Get Double-Tax Fix in Excise Exemption Rules (2)

Jan. 11, 2021, 7:28 PM; Updated: Jan. 11, 2021, 10:29 PM

Aircraft owners got a fix for a “problematic” rule determining how flights provided on a substitute aircraft were treated under an excise tax exemption, in final IRS regulations.

The guidance (T.D. 9948), released Monday, gives more clarity on when payments for management services for private aircraft are exempt from excise taxes under the 2017 tax overhaul. Tax code Section 4261(e)(5) specifies that an excise tax doesn’t apply on amounts paid by a private aircraft owner for services related to maintenance and support of, or flights on, the aircraft.

Under proposed rules (REG-112042-19, RIN 1545-BP37) in July, ...

To read the full article log in. To learn more about a subscription click here.