Articles - Insights on California sales and use tax

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"An investment in knowledge always pays the best interest." -- Benjamin Franklin

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Commercial Interstate Exemption

If you are going to use your aircraft personally the only exemption available is the principal use test. It is for 12 months immediately following the possession date.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


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Brokers may be held liable for sales tax

During a recent discussion with a business owner, he told me he was not required to have a seller’s permit because he was a broker and not a dealer. He said he called the California State Board of Equalization (Board) and they advised him he didn’t need a permit.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


6596 - Get it in Writing, or Pay the Price image

Get it in Writing, or Pay the Price

There is an organizational axiom which exists that states “If it is not in writing it isn’t true.” If an organization wants to hold another person liable for the expert advice they offer, the company receiving the advice would receive their instructions in writing.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


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1031 Reverse Exchanges Create Possible Double Sales/Use Tax Exposure

Have you ever watched a bunch of kids running around in the school yard, seemingly in chaos? They all have a plan to maximize their fun. It all seems to work out until some adult comes along and demands some order.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


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California Aircraft Sales Tax Tip: Don’t Change the Title of Your Aircraft

Recently I had a client that changed the LLC name that owned his aircraft because the Secretary of State said it was to close to another LLC name. This created nearly $60,000 in tax assessment from California.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


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Patriot or Criminal: The Important Distinction Between Tax Avoidance and Tax Evasion

On June 16, 1931 Al Capone - the notorious gangster at the top of the F.B.I's 'Most Wanted' list - was sentenced to 11 years behind bars for tax evasion. Tax evasion is an ugly phrase that runs hand-in-hand with words such as slimy, crooked, shady, corrupt.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Purchasing an Aircraft & Taxes: By the Numbers Image

Purchasing an Aircraft & Taxes: By the Numbers

Not all purchases are done by the final user. Like any other product, aircraft purchased for resale have a variety of tax exemptions. Dealers will have all the necessary tax experts to keep their tax obligation low, but companies that don’t specialize in resale aren’t in the same boat.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


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Fly Away Exemptions You Need To Know

No mater what their size, aircraft are specialized and highly-engineered pieces of machinery with high price tags to match. Those high price tags bring along substantial sales tax amounts. Take a plane that cost $10 million. If it's bought in a location where the sales tax rate totals 10%, you're instantly adding another $1 million to the cost of purchasing the plane.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


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What is Use Tax?

We've all heard of sales tax. In fact, most of us are so used to it that we barely notice the item at the bottom of our receipts. Use tax, on the other hand, is unfamiliar to most people. Unfortunately, use tax can have just as much of a sting on big purchases.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


The Hazards of Multi-State Aircraft Purchases Image

The Hazards of Multi-State Aircraft Purchases

The whole point of owning an airplane is the mobility that it gives you or your company. That mobility means many airplane owners find themselves straddling state lines when it comes to purchasing a plane or establishing its home base. The tax obligations of bridging states like this can be pretty substantial, and any potential aircraft buyer should make themselves aware of the hazards.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros

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