Woot! Us rich pilots get a tax break!

mikea

mikea

Touchdown! Greaser!
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iWin
Hey! The tax bill just passed by the U S Senate prohibits any tax on aircraft Management services, flights, or aircraft maintenance.

https://twitter.com/robferdman/status/936753264783233024

I'm SURE they had us single piston engine airplane owners in mind when that was added.

(SHHH. Stay vewwy vewwy quiet or they'll make it only apply to jets.)

Sent from my Nexus 9 using Tapatalk
 
This specific point is one of those mis-information bullchit talking points. This massive "tax break" for private jets is simply a clarification of an existing rule that the IRS unilaterally decided to start applying to aircraft management services when before 2012 there was no such tax...or even new tax law...someone just started applying a poorly written rule to those providers. The "tax break" just clarifies the wording of the tax rule as it was never intended for airplane management services and has been tied up in courts since 2012.

Thanks IRS.

While there is plenty in the tax plan to tear apart...now you have an anti 1%er bashing talking point that is based on pure ignorance and gullibility. Americans are sad.
 
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Name calling aside, please see relevant facts to back up my statements related to the private plane "tax cut" rather than believe everything you read on Facebook in a meme which was my point regarding this aviation topic (trying to keep from the ban hammer)

http://www.businessinsider.com/senate-republican-tax-reform-bill-private-jet-break-trump-2017-12

People are furious that the GOP tax bill has a break for private jet owners — but it's not what it seems

...But its purpose is to prevent private air charter companies from getting hit with what's known as the "ticket tax" on flights. The tax was originally designed to apply to commercial flights, while a separate gas tax applied to "general aviation" flights like private charters.

Due to some language confusion in the tax code, however, the IRS began imposing the "ticket tax" on private flights, which has caused a long-running battle between operators of the charter companies and the government. The IRS suspended the assessment of the tax on aircraft management companies in 2013 due to the lack of clarity and the agency dropped a number of audits on these companies in July because it still did not have updated guidance.

The TCJA language is meant to clarify the discrepancy and ensure that the ticket tax is not applied to private flights. According to a letter in 2016 from the Joint Committee on Taxation, the change would lose less than $500,000 in federal revenue over 10 years.
 
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TheGolfPilot said:
You guys know not everyone in California is a reasonless far left liberal ... right?
Too much political crap for an airplane forum
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So you’re saying there’s a bad bunch of people in California, and then there’s this whole other group that’s even worse? ;)
 
Shawn said:
WTF?... That was uncalled for. Did I hit a nerve or do you just judge everyone purely based on where they live?

We were taught that California has only three types of people. Fruits, Nuts, and Flakes. :D
Click to expand...
 
well-that-escalated-quickly-too-soon-6303052.png
 
Norman said:
We were taught that California has only three types of people. Fruits, Nuts, and Flakes.
Click to expand...

That is correct and appropriate...cuz after the passage of recreational marijuana we all now have the munchies!
 
Well, this thread just got confusing and weird context since the Mods edited out the offending comments (and rightfully so).

Back to rich plane owners ruling the world...
 
Santa Cruz Shawn makes valid points. I breezed thru the post and read "Americans are Sad" written by some dude from Santa Cruz and that's all I needed to see. I owe you a beer!
 
I love the jackhole comments knocking the "rich" when the vast majority of those twitters pay practically no federal taxes and probably get a "credit" , monthly loaded EBTs, and 'free' medical care...paid for by airplane owners.
 
I always find it nearly impossible to have useful discussions on taxes with people. Most don't seem to have a very good understanding of how taxes work and even if they do they get hung up on certain groups benefiting in some way and can't see past it.
 
IBTL. And I'm really getting tired of MSCARDS Hillary attacks. OK you don't liker her. Give it a rest.
 
A new tax bill - If you are very rich you will pay less taxes if you are middle class and the poor will pay more taxes. Nothing new.
 
Vitaly said:
A new tax bill - If you are very rich you will pay less taxes if you are middle class and the poor will pay more taxes. Nothing new.
Click to expand...
1) No one outside Congress knows anything yet
2) What is middle class and what is poor in your estimation?
3) Whether or not you pay more or less depends on your exact circumstances
4) In Jersey you should be quite accustomed to getting bled dry
 
paflyer said:
1) No one outside Congress knows anything yet
2) What is middle class and what is poor in your estimation?
3) Whether or not you pay more or less depends on your exact circumstances
4) In Jersey you should be quite accustomed to getting bled dry
Click to expand...

Dear Paflyer, we in NJ accustomed to what?
-That everyone lives on credit ?
- Pele who work on the check will pay even more taxes ?
- Large corporations like Trump will pay 10% less ?
- Federal will strt print even more money and resold is a big inflation because the defecitum will be big
 
Vitaly said:
Dear Paflyer, we in NJ accustomed to what?
-That everyone lives on credit ?
- Pele who work on the check will pay even more taxes ?
- Large corporations like Trump will pay 10% less ?
- Federal will strt print even more money and resold is a big inflation because the defecitum will be big
Click to expand...
Uhhh... right.

My Latin is a little weak- whats a "defecitum" ?
 
The article isn't 100% correct. Charter companies have to charge a ticket tax. The language was for fractional ownership companies for when an aircraft share owner isn't flying in the aircraft in which he/she has an ownership stake.

NetJets sells Bob a 1/4 interest in N1234A. Bob is allowed to fly in any one of the fleet of jets NetJets flies. So Bob calls NetJets to fly from LAX to JFK. Does Bob have to pay a ticket tax if he flies on N5432A (not the exact jet he has an ownership stake in).

The real battle is between FAR 135 charter companies and FAR 91K companies like NetJets. The charter companies feel that they are at a competitive disadvantage due to the tax. Trump sided with the 91K folks.


Shawn said:
Name calling aside, please see relevant facts to back up my statements related to the private plane "tax cut" rather than believe everything you read on Facebook in a meme which was my point regarding this aviation topic (trying to keep from the ban hammer)

http://www.businessinsider.com/senate-republican-tax-reform-bill-private-jet-break-trump-2017-12

People are furious that the GOP tax bill has a break for private jet owners — but it's not what it seems

...But its purpose is to prevent private air charter companies from getting hit with what's known as the "ticket tax" on flights. The tax was originally designed to apply to commercial flights, while a separate gas tax applied to "general aviation" flights like private charters.

Due to some language confusion in the tax code, however, the IRS began imposing the "ticket tax" on private flights, which has caused a long-running battle between operators of the charter companies and the government. The IRS suspended the assessment of the tax on aircraft management companies in 2013 due to the lack of clarity and the agency dropped a number of audits on these companies in July because it still did not have updated guidance.

The TCJA language is meant to clarify the discrepancy and ensure that the ticket tax is not applied to private flights. According to a letter in 2016 from the Joint Committee on Taxation, the change would lose less than $500,000 in federal revenue over 10 years.
Click to expand...
 
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