Firm Warns Aircraft Buyers to Get All the Facts In Order to Avoid Sales Tax
Consulting Firm Cites Case Where CA Aircraft Buyer Failed to Get Sales Tax Exemption
Sacramento, CA: AERO&MARINE Tax Professionals, (http://aeromarinetaxpros.com/), a firm that consults individuals purchasing aircraft on how to avoid paying California sales tax, warned buyers to get all the facts and plan out their strategy in advance – otherwise they could incur a sizable tax liability. A recent case demonstrated how purchasers in an aircraft sale can be at a disadvantage when it comes to understanding how to legally avoid sales/use tax. The taxpayer purchased his aircraft outside the State of California and intended to support a claim for exemption based on commercial use in his own business.
California regulations state that where an aircraft is purchased from a retailer outside California, first functionally used outside California, and brought into California within 90 days after its purchase, it will be presumed that the aircraft was purchased for use here (and sales tax would apply), unless during the six-month period immediately following California entry, one-half or more of the flight time traveled by the aircraft is commercial flight time traveled in interstate commerce.
Thomas Alston, President of Aero & Marine Tax Professionals stated, “In this case the purchaser logged 100 hours of flight time during the six months after California entry, and only 47 of those hours were for interstate commerce. The buyer thought that 8 hours he spent in flight training within California would not count on the total, but it did per the regulations. This is why it is vital for a purchaser of an aircraft in California to contact us prior to his purchase. We know the rules backward and forward and we guarantee that if someone follows our recommendations to the letter, they will get an exemption.”
Thomas Alston is the President of Aero & Marine Tax Professionals, the pre-eminent experts in California sales tax involving airplanes, vehicles or vessels. The company shows purchasers how to avoid sales tax and to make certain the full value of their aircraft, vehicle or vessel goes into their pocket–not the Government’s. He has 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.