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What is the difference between Federal and State tax requirements for aircraft acquisition and use?


 

Transcript:

When it comes to aircraft taxes, both federal and state must be taken into account. On the federal side, the most important are income tax which comes into play if you use your aircraft for business and write off the expenses, and federal excise tax, which applies if you sell air transportation. As to states, you must be [inaudible 00:00:25] of sales and use tax which may apply to the purchase price of the plane or to amounts received for leasing out the plane; and property tax, which may be assessed in the jurisdiction where the plane is based. State income taxes may also be a factor but they, for the most part, mirror federal treatment.

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