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Southern Wings Tax Advantages of Purchasing ... - Wiley Post Airport

Southern Wings Tax Advantages of Purchasing ... - Wiley Post Airport

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(Continued from page 1) December 31, 2011Generally, the aircraft has to be placed in service by December 31, 2011 to qualify for 100% bonus depreciation. Section 179 Expensing This provision is unchanged from 2010. A taxpayer can expense up to $500,000 of a new or used business aircraft, or improvements made to an aircraft. There is an aggregate limit of $500,000 expensing allowed for each taxpayer and it is restricted to taxpayers who purchase less than $2,500,000 in capital assets. A taxable income requirement has to be met in order to utilize this expensing provision. Planning 0pportunities By integrating an aircraft into your business, you can generate tremendous tax savings by deducting the operating expenses and 100% of the purchase price of the aircraft in 2011, provided that you maintain 100% business use for the aircraft. 0wnership structure will impact your ability to utilize bonus depreciation. 0ther income tax planning opportunities include: personal use of a business aircraft, related party leasing rules for listed property, passive activity loss issue, and documentation requirements to support the business use of the aircraft. State income tax treatment of bonus depreciation varies. Some states have decoupled from federal law and disallowed bonus depreciation for state income tax computation. Planning and limiting personal use of a business aircraft has taken on added importance for 2011 due to the amount of depreciation allowance available. Chartering an aircraft for personal entertainment use may be a viable and tax efficient alternative. The inter-relation and operation of the Internal Revenue Code, state sales and use tax laws and the Federal Aviation Regulations create unique planning opportunities for business aircraft owners. Sales and use tax planning can result in additional savings of between six to nine percent of the aircraft purchase price. Sales and use tax planning opportunities vary depending on the state that serves as the home base of the aircraft. Some states offer the complete elimination of sales and use tax liability for qualifying business aircraft. 0ther states offer exemption that allows the deferral of the sales and use tax liabil- 2 ity to be paid based on the actual usage of the aircraft. Understanding your state's available exemption and planning to meet the exemption prior to closing is paramount The accompanying table illustrates the amount of tax depreciation and potential income tax savings generated from the purchase of a business aircraft, based on 100% business use: Aircraft Model Purchase Price To find out more, please visit their website, or call at 1-800-342-9589. Aviation Tax Consultants, LLC assists aircraft purchasers in acquiring aircraft in a tax efficient manner. Our services include the elimination or reduction of sales tax at the time of purchase, maximizing income tax savings, controlling the cost of personal use of the aircraft, complying with passive activity loss and related party leasing rules and Federal Aviation Regulations. Cooperation with client's current tax and legal advisors is welcome and encouraged. Fred McCarter, Managing Member Daniel Cheung, CPA, Member Depreciation Expense Potential Income Tax Savings Cirrus SR20 430,000 430,000 172,000 Cessna T182 432,800 432,800 173,120 Cirrus SR22 465,000 465,000 186,000 Cessna 400 644,500 644,500 257,800 Beechcraft Bonanza G36 736,000 736,000 294,400 Piper Matrix 1,037,700 1,037,700 415,080 Beechcraft Baron G58 1,344,000 1,344,000 537,600 Piper Meridian 2,180,000 2,180,000 872,000 TBM 850 3,200,000 3,200,000 1,280,000 Pilatus PC12 4,500,000 4,500,000 1,800,000 Disclosure Under IRS Circular 230: To ensure compliance with requirements recently imposed by the IRS, we inform you that any tax advice contained in this communication, including any attachments, was not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax related penalties or promoting, marketing or recommending to another party any tax related matters addressed herein. ..............................................................

Airport Photo Wiley Post Airport Snow Removal February 1, 2011 Northbound on Taxiway Alpha. If you would like to submit a photo for the newsletter please send it via email to Kristy Reed at: .............................................................. OK Pilots Association Meeting March 3rd SUMITTED BY DEAN RITTER, OPA Executive Director David Hale has an extensive background in aviation and sports medicine. He is an Exercise Physiologist, Commercial Pilot, Licensed Skydiver and is a member of the National Business Aviation Association (NBAA), the Aircraft Owners and Pilots (AOPA), and the Experimental Aircraft (EAA) Associations. David Hale received his undergraduate degree at the University of Oklahoma and accomplished his internship with Carolina’s Medical Center in Charlotte, North Carolina. He completed post graduate studies and maintains certification with the American College of Sports Medicine. He served as an Exercise Physiologist in the cardiology department at Cedars Sinai Medical Center in Beverly Hills, California, and he is a Registered Physical Testing and Evaluation Specialist. David Hale is a corporate committee member of the Aerospace Medical Association, serves on the advisory board for Spartan School of Aeronautics, and is a contributing author to several publications including: “Aviation, Space and Environmental Medicine”, The “Federal Flight Surgeons Medical Bulletin”, and “Twin and Turbine Magazine”. .............................................................. GA Serves America General aviation is an economic engine that pumps $150 billion into the U.S. economy each year and creates 1.2 million jobs. Yet GA faces challenges from several directions which could cause much, if not all, of that economic activity to dry up. GA Serves America is an AOPA-sponsored educational initiative whose goal is to protect our valuable asset by educating policymakers, opinion leaders, and the public about the economic value of GA to all Americans, whether they fly or not. .............................................................. Operations/Safety/ Security Report KRISTY REED AIRPORT OPERATIONS OFFICER As crews continue the snow removal from the recent winter storms, I would like to thank everyone for their patience. On February 1st, It seemed the cards were stacked against us right from the start when our snow plow had a mechanical failure early that morning. However, our crew did a fantastic job utilizing the equipment they had left to return the airport to service and had the primary runway operational by 9:00 a.m. the morning of February 2nd. The weather has caused both of our construction projects to fall slightly behind schedule, but we don’t believe that it will have a huge impact on the overall completion times. The ILS for Runway 35R has a fully functional glide slope and localizer. Both are scheduled to be flight checked within the end of the month. The contractor is finishing the framework and pouring the last few foundations on the south side of 50th Street, completing the MALS-R system . C & C1 are contractors are awaiting warmer temperature before they can resume pouring. Finally, sometime Sunday evening February 6th, ten hangars at the PWA hangar complex on Wiley Post Airport were broken into and vandalized. I spoke with Dean Ritter, PWA President, about the break-ins and he stated that there were no items of large value taken from any of the 10 hangars. In addition to using bolt cutters to remove the locks off the hangars, the bandits pilfered through the contents of the hangars and in the end made out with an empty Bose headset case and a flat panel monitor. Mr. Ritter stated that this act was most likely carried out by youth, and we are very lucky that major damage was not inflicted upon the residents’ personal property. If you would like to be added to the NOTAM email list please email me at and I will add you to the list. 3

Lease Application Aviation - Wiley Post Airport