Proficient in Federal Tax and Corporate Structuring
Aerlex Law Group offers tax advice and planning to strategically address all aspects of the federal, state and local taxation issues that can arise in connection with the purchase, lease, or sale of an aircraft.
Aerlex attorneys review an aircraft buyer’s proposed ownership structure and offer recommendations to ensure it complies with both the Federal Aviation Regulations and Internal Revenue Service rules to avoid the creation of an illegal “flight department company,” and minimize exposure to federal excise tax and other tax liabilities, while at the same time, maximizing the tax advantages of aircraft ownership.
Aerlex attorneys will review and/or draft aircraft purchase and management agreements and offer guidance to clients on how to maximize business usage in order to qualify aircraft acquisitions for bonus depreciation, if available. Applying their comprehensive knowledge of the most current laws, IRS opinions and court rulings, Aerlex attorneys also guide buyers on their options for avoiding the recapture of accelerated depreciation previously taken.
Aerlex attorneys regularly advise potential aircraft owners on the process of valuing non-business flights and provide recommendations for strategically limiting personal use in order to minimize the impact of these limitations on deductibility.
Both private and commercial aircraft operators have to pay federal excise tax (“FET”) on either the purchase of fuel or the transportation of persons or property for hire. Aerlex attorneys offer explanations of FET issues during the pre-acquisition phase of any aircraft.
No one is more skilled than the Aerlex legal team in advising clients on how to legally avoid state sales and use taxes on aircraft acquisitions in California and other states through the use of legally permitted exemptions. During the pre-acquisition phase of any aircraft purchase, our attorneys will advise clients on these issues based on the particular client’s needs and objectives of the transaction.
Aerlex Law Group has extensive knowledge of aviation tax issues and offers clients expert advice during the acquisition phase of aircraft ownership. For all post-acquisition tax services, we recommend that clients seek assistance from our sister company, Aerlex Tax Services, LLC. View the ATS Website here.