Transcript:
In setting up a business craft ownership structure and in taking deductions from business aircraft, there are a variety of traps. What we’re trying to do generally as aircraft owners and operators is make sure that we’re FAA compliant, and in becoming FAA compliant we’re very careful about separating the aircraft out of general operations, or air carriage rules. Unfortunately this works in direct contradiction with some of the national reading and some of the IRS code provisions. It’s important when you structure your business aircraft and use your business aircraft, that you’re aware of rules such as related parting leasing limitations under section 280 F, and passive activity rules that treat mental activity as different from all other business activity. Make sure that you’re aware of passive activity rules, and the related nature of the lease in order to make sure that you don’t lose deductions that should be available to you for your business aircraft.