Aircraft Tax Planning For One-Owner Business

Proper aircraft tax planning gives businesses the opportunity to purchase a plane for business use and personal pleasure. The various tax-reduction strategies ensure significant benefits associated with the charter, lease, or purchase of the business aircraft. The charter, lease, and ownership of the plane follow the rules of the listed property so without a business use log, deductions are not available. It is necessary to track the use of the aircraft based on the seat miles and seat hours occupied. No free rides are available for family members or spouses. There may be different aircraft uses so the aircraft tax planning depends on this factor:

•    Personal
•    Business
•    Employee
•    Business entertainment

Those using the aircraft for enjoyment trips should eliminate such use or make it secondary to the business trip. When entertainment is the part of the day it is necessary to conduct business for over four hours. This way enjoyment becomes the by-product of an otherwise productive day eligible as an entertainment deductible for business discussion. Business should form the primary purpose of air travel because this way traveling to and from the work location is part of business use. As part of the aircraft tax planning, it is necessary to account for each seat mile and seat hour used during flights.

It is possible to deduct the business travel for a dependent, spouse, or companion when they are an employee, travels for genuine business, or travel expense deductible otherwise by the passenger. For optimal plane, deductions make personal trips or make your spouse, companion, or dependent an employee of the company. In a proprietorship, hiring kids or spouses work to the monetary advantage because you can employ them without any payroll taxes. Wage relationships involving a kid and parent do not involve payroll taxes. Consider this factor for aircraft tax planning.

Avoiding problems with the entertainment facility is another part of proper tax planning. Traveling to and from corporate entertainment is a nondeductible use of entertainment facilities as per the tax laws. Such harsh rules allow zero deduction even with a single facility used for entertainment purposes. There is a break for the aircraft transportation facility. It is possible to protect the deduction from disallowance from the entertainment facility by keeping the entertainment use nearer or equal to zero. Deduct only the corporate percentage and when using the plane for entertainment purposes maintain over half company use percentage.

Aircraft tax planning with entertainment and business activities on the same day involves extending the business activities longer than the enjoyment part. This makes it a day for business. Sometimes the entertainment part is longer but the business part was critical like signing the contract making it a workday. Arrange the activities in a way that legally the day turns into a day for conducting business instead of entertainment. For more information visit here: Advocate Consulting Legal Group, PLLC.

4 Practical Benefits of Maintaining Aircraft Compliance

Safety comes first in every aspect of the aviation industry. With the massive potential of analytics and big data, it is now possible to monitor and analyze the health of an aircraft, even while in flight. Such monitoring can effectively reduce the case of ground issues and expensive maintenance charges. However, if the designers and manufacturers of the aircraft maintain strict Aircraft Compliance, it will ensure the safety of the passengers. There are various benefits on practical ground that inspires the aircraft manufacturers to maintain strict compliance with the regulations from the central authority that continuously update the regulations for the safety of passengers and airline operators.

Benefit #1: Better safety culture

Data analysis is now a crucial part of the monitoring system in the industry. As the data includes all ground incidents and other problems, it provides important information about the lagging factors in the design of parts and mechanisms. As per the data, the aviation regulatory authority will revise the standards to improve Aircraft Compliance. The process will help to maintain better safety cultures that will also help in extending the durability of the aircraft along with minimizing the frequent issues. Safety culture is mandatory in the industry that works with the life and death of the passengers every day.

Benefit #2: Fewer accidents

Accidents are never intentional. But what if the accident happens because the aircraft manufacturer failed to execute the manufacturing process as per the industrial standards? Strict Aircraft Compliance is necessary to make sure that no manufacturer can get away with compromises in the design, architecture, or material used for making these aircrafts. As a result, fewer incidents of accidents happen due to component failures or system errors. This will help build a sense of assurance among the passengers if they know that the aircraft complies with the regulation standards.

Benefit #3: Better operational environment

The professionals who fly the aircraft and the cabin crew are all responsible for the safety of the passengers. However, if there is no supportive environment available within the aircraft, it cannot be easy to operate efficiently. Therefore, the aircraft manufacturers should always focus on Aircraft Compliance to provide the best environment to the pilot and the team. Even in cases of danger, the pilots can make better safety decisions and act accordingly if they have a very convenient and supportive operational environment.

Benefit #4: Better problem-solving approach

One of the overarching goals of the compliance programs is to foster a solution-based approach where the professionals will nurture a problem-solving attitude. It will help analyze the safety problems and find effective compliance through information sharing. The certificate holders have to be part of sophisticated programs that help them to learn how to identify the situations and enforce the application of the right strategies to solve the problem. The process aids in the identification of emerging hazards and predicts the associated safety risks in aviation. The following changes or additions in the compliance rules lessen the chances of any potential hazards. For more information visit here: Advocate Consulting Legal Group, PLLC.