In May 2026, a federal court of appeals handed Flight Options (now an affiliate of fractional operator Flexjet) a victory in a long-running dispute over federal excise tax on fractional-program fees. The IRS sought payment of $39 million (which included interest and penalties) for Flight Options’ failure to collect 7.5% federal excise tax (FET) on fractional program monthly management fees (and membership fees for a now-defunct jet-club program). It’s important […]
Los Angeles County is a popular destination for private aircraft. A hub for the entertainment and aerospace industries, the county counts nearly 10 million people as residents. LAX, Van Nuys, Long Beach, Burbank, Hawthorne, Torrance and Santa Monica are the primary airports used by private aviation. Many (most?) aircraft that are available part-time for Part 135 charter to the public end up visiting L.A. County. In March 2026, the L.A. […]
After over a decade working in aviation, Aero Law Group Administrator Meredith Clifford is adding a new responsibility that is taking her interest for the industry in a new direction — one that brings visibility and style to the women who fill various roles in this field. Her new brand, Par Avion, was born from a simple question voiced among colleagues on the golf course: “Why can’t we find golf […]
On July 4, 2025, H.R. 1, the One Big Beautiful Bill Act (OBBBA), became law, which increased and permanently extended “bonus depreciation.” Specifically, for private aircraft used in a “trade or business” and meeting certain other requirements, taxpayers can now deduct 100% of the cost basis of a business aircraft for the tax year that it is placed in service. Previously, 100% bonus depreciation was available for business aircraft placed […]
On May 20, 2025, Washington Governor Bob Ferguson signed a bill (ESSB5801) imposing a 10% luxury tax on the sale and use of private aircraft to the extent the value of the aircraft exceeds $500,000. The effective date of the aircraft luxury tax is not until April 1, 2026, but private aircraft owners that plan to hangar or land their aircraft in the State of Washington after that date should […]
If you spend enough time in the aviation industry in nearly any capacity, from being a pilot, mechanic, or flight attendant, to running an airline, management company, flight department or airport, contact with the FAA is nearly inevitable. Most of these interactions are routine, however, on occasion, members of the industry may find themselves, their employees, or their company under investigation by the FAA. While most FAA investigations are closed […]
As we start the month of November, a time of thanksgiving, it is especially important as the head of a company to show your appreciation to your hard-working employees. With so many companies still struggling with the realities of COVID, many have had to make the difficult decision to cut their employees’ pay or hours, implement furloughs, or let go of good employees altogether. Employees that have been fortunate to […]
There are many factors that contribute to the longevity of a business. I’ve noticed with our Strategic Partners, a few of the key factors include specializing in one particular industry, being passionate about what they do, and quickly being able to adapt to market changes. When you focus on an industry you enjoy long enough, customers start to share their experience with others which in turn makes other prospective users […]