Welcome

New IRS Rules Don’t Exempt Family from Aircraft Excise Tax (2)

July 29, 2020, 3:24 PM; Updated: July 29, 2020, 10:20 PM

An excise tax exemption for owners of private aircraft paying for management services doesn’t apply to related parties, like family members, the IRS said Wednesday.

The IRS released proposed rules (REG-112042-19, RIN 1545-BP37) to give more clarity on when payments for management services for private aircraft are exempt from excise taxes under the 2017 tax overhaul.

“One of the biggest takeaways from today’s proposed regulations in my view is the government’s limited interpretation of who is an ‘aircraft owner,’” said Debbie Gordon, a principal and head of excise tax at RSM US LLP in Washington.

The guidance ...

To read the full article log in. To learn more about a subscription click here.