Professional Specialists
Although many aircraft owners have a financial and legal team advising them on their business operations, specialized assistance is usually needed to ensure the aircraft operating structure properly balances these competing areas of law to meet the owner’s priorities. We do not compete with your other advisor’s services; we compliment them. By working with your advisors, Premier develops an aviation plan, integrates it into your overall planning, drafts necessary documents, and coordinates its execution. Creating an aircraft ownership and operating structure is a complex undertaking that requires balancing and integrating several competing areas including federal income tax, state sales and use tax, Federal Aviation Regulations, federal excise tax and liability issues.This integrated aviation plan will comply with Federal Aviation Regulations, (FARs), only to the extent that the client understands and follows instructions as to documentation and payments. The ability to legally avoid sales and use tax varies by state, and again, care must be taken to execute the transactions correctly. This plan is not designed to create income tax deductions not otherwise available under the Internal Revenue Code. It is designed to review the effectiveness of the proposed structure from a tax perspective, and maximize the possible income tax deductions including aircraft depreciation, while avoiding limitations imposed by the Internal Revenue Code relating to basis, fringe benefit limitations, passive activity limitations, etc. Income tax deductions result only from the use of the aircraft in a trade or business that is operated for profit. Deductions are not available for expenses incurred for personal use, or in the furtherance of a hobby. It is important that the aircraft be properly integrated into the business in such a manner that its use does not violate the FARs, while still resulting in ordinary and necessary expenses that are reasonable in amount incurred in a trade or business.