Recently, one of my clients mentioned that he couldn't provide his documents because they were in his aircraft, while he was in a different location. My immediate reaction was, “That is dangerous!” He responded, “Everyone leaves their logs and other documents in their aircraft. We have to.” This seemed reasonable at first, but I had to reconsider my stance. Why did I think it was dangerous?
I realized that I had heard this warning many times from aviation attorneys at tax seminars. Specifically, the caution came regarding aircraft flying home from an out-of-state purchase location with the original copies of all the sale and closing documents and FAA registration documents. Accidents can happen, and some aircraft never make it home. If all the documents are lost in a crash, the consequences are magnified. It isn’t just the loss of human life; it can become an insurance and tax problem as well.
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After reflecting on the situation, I concluded that my warning was still valid and reasonable. Let's consider the scenario where you're gathering documents to support a tax exemption for an aircraft purchase, or documents that the IRS might demand to support your business use. Even if you believe the FAA or your boss requires these documents to remain on the aircraft, there's a safer approach.
I suggest using your cell phone to take clear pictures of all necessary documents and immediately sending them to your office or your tax professional, such as Aero & Marine Tax Professionals. iPads and other devices can also be used for this purpose. This extra 60 seconds can save you a great deal of grief in the long run.
Aero & Marine Tax Professionals can assist you with these processes, ensuring that your tax documents are properly managed and accessible, reducing risks associated with keeping original documents on your aircraft. By leveraging their expertise, you can achieve tax compliance and secure exemptions more efficiently.
Ready for your free tax liability consultation? Contact us today.
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