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Phasedown of Bonus Depreciation for Aircraft Begins in 2023

This Holland & Knight alert explains the phasedown of bonus depreciation for aircraft beginning in 2023. Through 2022, bonus depreciation has been allowed for 100 percent of the cost of qualifying property (which generally...more

Commuting Disallowance in 274(l) Does Not Apply to Partners, 2% Shareholders in S Corporations

Beginning in 2018, Internal Revenue Code (I.R.C.) Section 274(l) disallows deductions for the cost of flights provided to an "employee" for commuting. While this deduction disallowance may apply to employees of Subchapter C...more

IRS Issues Favorable Tax Regulations on Management Company Exception to FET

Over the past few years, the Internal Revenue Service (IRS) has worked to issue final regulations that provide guidance to aircraft management companies and aircraft owners regarding their federal excise tax (FET)...more

NBAA Article Explains IRS Stance on Entertainment Disallowance for Sole Proprietors

The Internal Revenue Service (IRS) recently released Chief Counsel Advice (CCA) 2021-17-012 to explain that sole proprietor flights are generally not subject to the employer-provided aircraft rules in Internal Revenue Code...more

IRS Set to Publish Final Rule on Federal Excise Tax

The Internal Revenue Service (IRS) is expected soon to publish its final rule on federal excise tax (FET) exemption for aircraft management companies and owners. The IRS pre-published final rules incorporate several...more

NBAA, NATA Submit Comments to IRS on Excise Tax Exemption for Business Aircraft Management Services

The National Business Aviation Association (NBAA) joined with the National Air Transportation Association (NATA) to submit to the Internal Revenue Service (IRS) and the U.S. Department of the Treasury on Sept. 29, 2020,...more

NBAA Requests Hearing on Disallowance of Commuting Expenses for Aviation Industry in TCJA

The National Business Aviation Association (NBAA) submitted comments to the Internal Revenue Service (IRS) on Aug. 24, 2020, on behalf of the business aviation community with respect to Prop. Treas. Reg. § 1.274-14, which was...more

IRS Provides Guidance with FAQs on Federal Excise Tax Suspension Reporting

The Internal Revenue Service (IRS) has released a series of frequently asked questions (FAQs) regarding the federal excise tax (FET) holiday for commercial aviation operations created by the Coronavirus Aid, Relief, and...more

NBAA Article, Webinar Address CARES Act and Its Impact on Business Aviation

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) suspended federal excise taxes (FET) for commercial aviation operations until Dec. 31, 2020. A National Business Aviation Association (NBAA) article, "What...more

NBAA Responds to IRS Proposed Rulemaking for Business Meals, Entertainment

The Internal Revenue Service (IRS) has released its proposed regulations regarding tax treatment for business meals and entertainment activities. The proposed regulations are consistent with the prior guidance released by the...more

The Family Office: Planning for Private Aircraft Assets

• Family offices are increasingly involved in structuring and managing the ownership or use of private aircrafts for business and personal travel. • The optimal structure will vary depending on a number of factors,...more

John Hoover Testifies for NBAA at IRS Hearing on Bonus Depreciation Regulations

The Internal Revenue Service (IRS) held a hearing on Nov. 28, 2018, regarding its proposed bonus depreciation regulations. Holland & Knight Partner John Hoover testified on behalf of the National Business Aviation Association...more

NBAA Comments on IRS Notice Regarding Business Meals

The National Business Aviation Association (NBAA) on Nov. 5, 2018, filed the attached comments with the Internal Revenue Service (IRS) regarding IRS Notice 2018-76, which generally permits the deduction of business meals and...more

Business Aviation Industry Should Take Note of Two Recent Tax Items

The Internal Revenue Service (IRS) has released a Notice regarding the tax treatment of meals, and the National Business Aviation Association (NBAA) has submitted comments to the IRS regarding the proposed regulations on...more

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