The Hughes H-1 Racer, the “Winged Bullet”
In it, Howard Hughes set the speed record in 1935 (352 mph) and several cross-country time records in 1936 (Burbank-Newark, Miami-New York, and Chicago-Los Angeles)
Howard R. Hughes, Jr.—The Record Setter
This was a recent presentation I was invited to make at a major aircraft manufacturer’s sales team meeting. Just click the grey right arrow to load. Then keep clicking the grey arrow or select “More” and “Auto Play”
Are iPads Legal in the Cockpit?
A client of mine recently asked me if the FAA restricted the use of iPads and iPhones in the cockpit of his private aircraft. iPads and other tablets are so prevalent in today’s cockpits,
that many of us may assume they have the FAA’s seal of approval. (we will discuss iPhones in another post) After all, any visit to Sporty’s Pilot Shop will turn up dozens of accessories and apps designed for using your iPad in the cockpits of your aircraft. However, the answer may not be so simple.
Buying an aircraft? Don’t forget the sales tax.
If you are in the market to purchase an aircraft, there are many considerations: the purchase agreement, the inspection, how to structure your ownership interest, and how to utilize federal income tax deductions. In the midst of all this planning, be careful not to overlook the most costly potential transaction fee: sales tax.
Most states, counties and municipalities charge a sales tax on an aircraft purchase. Typically, sales taxes assessed on an aircraft purchase range from 6-8%; but some can climb to as high as 10%. Thankfully, many have implemented specific opportunities to limit (and sometimes avoid) this hefty obligation.
Great Tax News for Business Aviation!…kind of
The recently enacted Worker, Homeownership, and Business Assistance Act of 2009 extends the loss carryback rules. Under this new Act, a US company may now take losses generated in either 2008 or 2009 (not both) and apply them to offset income earned in prior years, all the way back to 2004.
How does this help aviation? Well, if a company purchased an aircraft in 2008 or 2009, depreciation deductions could help to create a loss for that year. To the extent that this loss could be applied to more profitable years past, the company could be entitled to a refund for previous taxes paid.
Now for the “kind of” caveat. Unfortunately, this bill was not signed into law until last month. So, this leaves precious little time to decide to buy an aircraft if you haven’t already done so. Two weeks from now, to be exact. For those of us who missed our chance, we can only hope that this benefit will be extended into 2010.
For those “lucky” ones that had a loss in 2008 or 2009, whether assisted by an aircraft purchase or not, make sure that you discuss this extended carryback election with your tax advisor. As with many tax benefits, it isn’t automatic, you have to ask for it.
