By Steven Pybrum-Reliable Tax Specialist/Financial Planner.
Author of “Money and Marriage Series of Books.”
Private Aircraft Use Increased due to COVID 19 Pandemic
Private Aircraft Use Increased due to COVID 19 Pandemic, Plane is Faster, Safer, Healthier
Private Aircraft use saves time, makes money, provides safety, privacy, security and Healthy Environment, owners be mindful of IRS challenges.
SANTA BARBARA, CA, USA, July 16, 2020 /EINPresswire.com/ — Business Cents
By Steven Pybrum-Reliable Tax Specialist/Financial Planner. Author of “Money and Marriage Series of Books.”
Aircraft use in business has escalated to a major necessity.
After September 11, 2001 the use of private aircraft by businesses increased. Not only because the aircraft saved time and money it offers the company employees safety and security. Now with a contagious virus circling the globe at pandemic levels business airplane travel is again increasing, now for health reasons.
Steve Pybrum, Director of Taxation at Canberra Company, Santa Barbara, Ca is a tax specialist that specializes in the tax issues relating to the use of private aircraft. From buying, brokering, exchanging and selling issues to sales tax issues, property tax issues, depreciation and IRS audit issues. Pybrum says, “We protect every screw, nut and bolt of the aircraft from over taxation.”
One of the hazards of owning an aircraft used for business is the IRS audit. The auditor shows up or maybe a group of them, they can’t get to where they want to go using a private airplane, why should you? So they may dig in a little deeper to try to harpoon the businesses use of the aircraft.
Aircraft defense structure equals documentation. Though the FAA in many cases involving private aircraft does not mandate the maintaining of a log book, your first line of defense in an IRS audit is the log book. The log book list the details of where the plane went, the day, the time, the airport, the length of the flight.
All of these details will help support the big depreciation deductions available to business aircraft, the expense of upkeep, the airport housing of the plane, the pilot, the gas and importantly the repairs. It is very important to repair the plane and even repair some things that are not worn out yet in anticipation of their potential for failure in flight are reasonable, ordinary and necessary expenses of the operation of the plane.
The purpose of the plane is the business convenience of being able to go at 11am or 11:15 on your schedule. From car to take off may be 15 minutes rather than sitting around an airport terminal for 3 hours waiting for a plane to Idaho.
The courts have long supported the businessman and the need for private aircraft often noting the revenue creating nature of air travel and the time saving opportunities involved in air travel. Now if you are in California and you need to go from Irvine to San Francisco by car this may take well over 12 hours. If you fly from John Wayne Airport to the Oakland Airport this may take 2 hours. Plus every one forgets the business that has done this has protected the safety, security and the health of the employees involved in the airplane use.
The IRS says, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can’t deduct expenses that are lavish or extravagant. You’re traveling away from home if your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day’s work, and you need to get sleep or rest to meet the demands of your work while away. Though IRS allows the use of private aircraft you may need to be prepared to defend your position.
A private airplane is for your safety, security, privacy, it saves time, makes you money and is better for your health.