What are the requirements of the California Interstate Exemption for Aircraft?
The basic test requirements are that an owner must use the aircraft more than 50% for business, outside of the State of California over the course of a 6-month test period.
Do I have to own a business to take advantage of the Exemption?
No. You may be a business owner OR you may be an employee. As long as you are using the aircraft for business and pass the requirements of the test, you are eligible for the exemption.
What are the requirements of the Ascendant Aviation 100% Money-Back Guarantee?
If you hire us to help you pass the exemption and you do not pass, we will refund 100% of the money you paid us for our fees. The only non-refundable cost is the entity formation fees for creating the entity (usually an LLC) that owns the aircraft and the LLC formation fees in California are $70.
What if my situation changes during the test period and I am unable to pass the interstate exemption. Will I still get my money back?
Yes. We will still refund your money if you are unable to pass the exemption, even if it is because your situation changes. NOTE: If your situation changes, we may still be able to use a different exemption that reduces your sales tax bill. However, it is your choice whether to proceed with the secondary option.
Can I take income tax deductions for the aircraft expenses AND still use the California Interstate Exemption?
Most of our clients DO take income tax deductions for expenses. We offer full-service engagement for clients wanting to take advantage of the California exemption as well as deduct aircraft expenses against their other taxable income. Ask about tax deductions during your free consultation.
Do I need to put my aircraft in a company in order to take advantage of the exemption?
We will provide you advice on the best way to own and operate your aircraft for the purposes of passing the exemption AND for owning an aircraft in general. We truly believe that no one should own an aircraft in their own name and we will discuss that with you during your consultation.
Will you form a Limited Liability Company (LLC) for me to own my aircraft?
Yes. As part of ALL of our aircraft engagements, we include the formation of your entity (typically an LLC) as part of our services. We form these entities in every state in the United States and there is not additional cost to you other than what the State charges us to form the entity. Please do not use a company like Legal Zoom to form your entity. Their business model is to charge you fees to form your entity. We do not make any money on the formation of your aircraft entity.
Don’t I need a lawyer to form an LLC or Corporation?
No. There is a common misconception that you must use an attorney to form Limited Liability Companies, S-Corporations and/or C-Corporations. No state in the US requires that a lawyer be used for the formation of any of these types of companies.
Do I have to make a decision on using the exemption BEFORE I take delivery of my aircraft?
Yes! It is important where the aircraft is located when you take delivery and what you do with the aircraft immediately after delivery. If you are thinking about using the exemption, you need to speak with us before you close on your aircraft purchase. If you have already closed on your aircraft purchase, you should schedule a call with us immediately before doing anything else with your aircraft.
What if I am taking delivery of my aircraft tomorrow?
You should message us immediately and speak with us regarding the exemption BEFORE you close on the aircraft.
Do I need a Tax ID for my aircraft company?
In most cases yes. We would typically apply for the Tax ID for your company on your behalf. However, we will have the discussion on whether or not you need a Tax ID before we form your aircraft company.
