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Aviation Company Obtains Tax Exemption on New Company Plane
Company Assisted By Aero & Marine Tax Professionals in Recent Tax Case
An executive from the company stated: “This aircraft is owned by three different entities. Our company does petroleum marketing to convenience stores, wholesale, terminal lane, pipeline shipments, cardlock fuel is a big part of our business, and commercial fueling. One of my partners is a plastic surgeon, another is a big agriculture producer. We have a lot of business interests throughout the western United States. This aircraft is good for that mission. We had the Citation 2, which Aero & Marine Tax Professionals helped us with previously. We weren’t using that to its best advantage. We weren’t making long enough trips to make economic sense, so the Pilatus fits that mission very well.
“The process with Pilatus went well. This one was complicated, we changed out of the Citation into the Pilatus and we tried to exchange into a new entity which we set up to own the Pilatus. Then we found out that we couldn’t do that. We had to take title to the Pilatus in the same entity that owned the Citation. So that got complicated with four different entities. We had to backtrack and put that together. It was a little more complicated than normal. Working with Aero & Marine’s staff was good. They gave a lot of good counsel about what we should and shouldn’t be doing. We’d get the reports up to date as to where we were on the out-of-state flying hours versus in-state flying and they worked with us on a regular basis. They said to get it to 60% of the out-of-state, which we did. Then they sent in the paperwork, and we just received our approval yesterday. I would recommend Aero & Marine to others,” concluded the executive.
Tom Alston, owner and founder of Aero & Marine Tax Professionals, stated: “This one certainly was more complicated, but that was just in the set-up of the case. There was never any real doubt from the beginning that the use tax exemption would come out alright, there were just more logistics to work out. All in all it went very well. We’ve worked with this company many times in the past to legally avoid sales tax on their aircraft purchases, and they know we’re a company that can be trusted to get the result – an exemption.”
Aero & Marine Tax Professionals shows purchasers how to specifically avoid aircraft and vessel sales/use tax in California and to make certain the full value of their next aircraft, vehicle or vessel goes into their pocket--not the government's. They have successfully filed hundreds of tax returns with the California State Board of Equalization. Mr. Alston has also published many articles on sales and use tax. Their blog can be seen at http://aeromarinetaxpros.typepad.com.
Aero & Marine Tax Professionals