Who has responsibility for the tax treatment of your fractional aircraft?
Fractional ownership of an aircraft involves the same compliance and reporting as full aircraft ownership. AircraftLogs offers a software solution to streamline IRS compliance, reducing risk and saving time.
If your flight department uses fractional aircraft to supplement your corporate aircraft during busy
or during maintenance events, your fractional aircraft can be added to your existing AircraftLogs account.
See Corporate Flight Departments
If your company is using fractional aircraft for all of your corporate aircraft travel, AircraftLogs can provide a customized solution for your specific operation. Your use of fractional aircraft has evolved over time, growing to the size you have today. We'll work with you to understand your specific needs for scheduling, reporting and internal accounting to support your operation.
Fractional ownership can be cost effective, and it allows a company to transfer the responsibility of managing of their flights to an organization with the expertise to fly and maintain corporate aircraft. But certain responsibilities will always remain with your corporate function – and our solutions help your staff manage those tasks:
IRS rules require that senior employees and their guests will incur fringe benefit income, which must be imputed by the employer on employee 1099's or W-2's. Commonly known as “SIFL” these calculations must be performed on applicable flights. In addition, newer IRS rules now require a portion of the company's cost for owning and operating their aircraft be fully disallowed (becoming non-deductible expenses) when senior management and key principals use the aircraft for flights which are deemed “personal” for tax purposes. Most corporations provide some level of personal use to their executives, and some require their CEO to utilize corporate aircraft for all travel, including personal travel. These organizations are required to “disallow” a portion of their aviation expenses and aircraft depreciation.
SEC Registrants must disclose the incremental cost of providing personal use of the corporate aircraft to Named Executive Officers in their compensation disclosures. AircraftLogs provides the automated reporting of these requirements, and updates the calculations with the latest regulations and rates.
While you may be using a factional provider for added flexibility and a controlled cost, many companies will want to analyze aviation performance metrics and expense information in manners which the fractional company cannot provide through routine invoices, flight logs and monthly statements. AircraftLogs provides the tools and the services to allow your corporate staff to gain insight and analytics regarding your operations. We can help you gain a top-down view of your entire operation, helping you view a bigger picture than an invoice-by-invoice report.
You might be using a fractional company because you lack the internal staff with aviation expertise, but still are faced with managing aviation-related reporting responsibilities. We may be able to help you interpret the data, or simply manage it for you. In those cases, our Business Process Solution can supplement your existing resources, providing the extra capacity needed by your company.
AircraftLogs announced today the first release of its new “Aviation Intelligence” reporting platform, which provides its software clients with unsurpassed data analysis and reporting capabilities. “If there’s one thing that a flight department generates, its data!” said Jordan Pfahl, leader of AircraftLogs BPS service line. “We’ve now made it possible to provide clients with all sorts of analysis. If you’ve captured the data, we can now help you gain further insight about your specific areas of interest.”
AircraftLogs has led the aircraft scheduling market for years with reporting capabilities and performance metrics. “As flight departments have become more sophisticated, more IT-driven, and demanding more data for consumption, we’re giving them that capability” said Andrew Hartley, leader of the AircraftLogs Standard service line. Read More
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