Aviation-dedicated CPA Firm Sees Increased Demand
With the increased availability to electronic flight tracking technologies, as well as increased cooperation between enforcement agencies, states are more strictly enforcing sales and use tax filing requirements. The filing requirements in regards to exceptions, exemptions and deferrals are complex and often catch business aircraft owners off guard. As a result, a larger-than-ever number of aircraft owners and operators have been turning to Aviation CPAs, the company reports.
Due to the 2017 TCJA bonus depreciation changes, the company has also experienced an influx in clients needing assistance in qualifying for and claiming 100 percent bonus depreciation. The changes to the regulations increased the bonus depreciation percentage from 50 to 100 percent for qualified property acquired and placed into service after September 27, 2017, and before January 1, 2023. With only a little over a year left to qualify for 100 percent bonus depreciation, aircraft transactions are increasing at a rapid rate as companies are actively working to take advantage of this benefit. Aviation CPAs works with aircraft owners and their team in developing an aircraft ownership structure that will provide the maximum benefit possible for the aircraft owner, and provides consulting services that address, clarify and provide solutions to the many nuances of the IRS, DOT, SEC and state regulations. The company also offers reporting tools that allow companies to track flight activity according to the required Qualified Business Use tests in order to meet the § 280F business use requirements.
The company’s propriety aviation tax reporting software, Flight Tax Systems, has also seen significant growth. What started out as an automated SIFL, cost disallowance and IRS substantiation reporting program, has evolved into a robust and sophisticated resource with advanced features such as mixed use flight reporting, international SIFL rule reporting and built-in technology to apply intricate tax calculations to complex flight scenarios. The software also offers a depreciation report for monitoring flight activity for meeting the Qualified Business Use requirement for § 280F depreciation and a host of other features.
The company is a Gold Sponsor of NBAA’s 2021 Tax, Regulatory & Risk Management Conference to be held Oct. 10 and 11 in Las Vegas and will be exhibiting at NBAA’s Business Aviation Convention & Exhibit, which will follow the tax conference from Oct. 12–14. The company can be found at Booth 3216 at the Las Vegas Convention Center.
