Please ensure Javascript is enabled for purposes of website accessibility

Blog

What is a grouping election?


 

Transcript:

A grouping election is an indication to the IRS that an aircraft is part of a larger economic enterprise or activity, and that the profit seeking activity, and actually the very nature of the aircraft operations themselves, need to be viewed through a larger lens of the total business operation. Grouping elections can be very informal, but for passive activity purposes it’s very important that a grouping election be proactively filed with the IRS in order to indicate the definition of the activity that the aircraft falls within. This is something that’s filed at the 1040 level for most taxpayers, and it indicates the identity of any taxpayers that the 1040 flow-through would like to be viewed as a single activity for the purposes of evaluating whether or not it’s a business, and/or whether or not it is a rental activity.

Advocate Covers:

Our Results

Service Agreements

Piston Aircraft Comprehensive Service Agreement

For Piston Aircraft  – $5,000 per year

Small Turboprop Comprehensive Service Agreement

For a single Turboprop Aircraft costing less than $2,000,000 – $7,500 per year

Large Turboprop Comprehensive Service Agreement

For Turboprop Aircraft costing more than $2,000,000 – $10,000 per year

Our Team

Meet the Attorneys

Jonathan Levy

Shareholder

Suzanne Meiners-Levy

Shareholder

Joseph Quackenbush

Managing Attorney

Letisha Bivins

Managing Attorney

Do you love aircraft? Work with our team of professionals!

Contact Us

Get in Touch
With Us

Get in Touch