State Sales & Use Tax – Let Our Aircraft Tax Consultants Help You Legally Avoid Paying State Sales Tax On Your Aircraft

Prices of new and used aircraft are like any other big ticket item in this post-pandemic (hopefully) world, through the roof.  Time-frames for newly built general aviation aircraft are being quoted in years and not months at this point, and the unavailability of new aircraft has bolstered used aircraft prices, the likes of which we have never seen.  With the prices of new & used aircraft at historical highs, how can anyone even consider paying 7%-11% more for their aircraft, in the form of state sales and use taxes?

Don’t think you only have to worry about your ‘home’ state when you are buying an aircraft.  WHERE you buy your aircraft makes a difference.  There are several states that will allow you to close on your aircraft transaction and leave without paying sales tax, but there are many more states that don’t have a ‘fly-away’ exemption.  And even if the state you close in has a fly-away exemption, do you know the requirements to use the exemption in that state?

There are seven states in the US that don’t impose sales tax on general aviation aircraft.  There are 43 states that do impose sales or use tax on aircraft that are purchased, transferred or just moved into their states.  All 43 of those states have legal sales tax exemptions that our aviation tax consultants can utilize to help you reduce or eliminate entirely, the sales tax you must pay otherwise.

Don’t make the mistake of trying to manage an aircraft sales tax exemption on your own.  Once the exemption is ‘blown’, there is little you can do to correct the error.  We have the knowledge and experience to help you navigate through the process of acquiring your new aircraft and avoiding sales tax.  Let the professionals at Ascendant Aviation Tax & Accounting advocate for you and help you keep more money in your pocket.  Use the “Contact” link at the top of the page to reach out to us for a free consultation.

Aircraft Taxation Engagements

Our comprehensive aircraft engagement is a “turn-key” service that provides you extensive evaluation and recommendations for acquiring and operating your new aircraft, while maximizing federal deductions utilizing the most up to date federal guidance and reducing the sales tax burden in the state of purchase and operation.  Federal & State law are always in a state of flux and we continually monitor any relevant case law and guidance for changes that may affect our clients.

In addition to the strategic guidance we provide in our engagements, we take all actions necessary to implement our recommended structure, so that you only have to worry about conducting your business and flying your new aircraft.  We handle all sales tax and federal tax filings for you and we work with your tax professionals to make sure that your aircraft operations are in sync with your everyday business operations.

Finally, should the IRS or a State audit your structure or aircraft ownership, we will provide, at no additional cost to you, assistance in those proceedings through the administrative process (audit & appeals in IRS Examinations).


Sales Tax Only Engagements

If you don’t have business use of an aircraft, for which you could take federal deductions, you may still be able to avoid paying sales tax on the purchase of your aircraft, if you structure your purchase appropriately.  Ascendant Aviation offers Sales Tax Only Engagements that allow you to reduce or eliminate your sales tax burden on the purchase of an aircraft.  This service is also turn-key and we will defend the sales tax structure in any state at no additional charge.

Fixed Base Operator & Flight School Consulting

Ascendant Aviation Tax & Accounting has had the opportunity to work with some of the most successful Flight Schools, Charter Services, & Fixed Base Operators throughout the country and we are able to offer our wealth of knowledge and “best practices” to your operation.  Besides offering financial and operational services to our aviation clients, we are often able to put two clients together in strategic alliances that benefit both businesses.

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