According to media reports, Americans may not be the only ones who could benefit from tax cuts if the most recent version of the Senate Republican tax reform bill passes; owners of private jets could benefit as well.
The Joint Committee on Taxation says that owners or lessees of private aircraft would be exempt from paying taxes on services provided by management companies in the upkeep and maintenance of jets such as storage, fueling, flight planning, scheduling, hiring of pilots and crew, along with training of staff, and other services in the maintenance, operation, and administration of private aircraft.
The proposed tax break for private jets comes on the heels of recent controversies regarding the use of private jets by Cabinet officials including Tom Price, former Health and Human Services Secretary, who allegedly spent over $1 million on private and military flights at the expense of taxpayers. Price resigned after this information was revealed.
The Tax Cuts and Jobs Act is headed to the Senate with the proposal to cut taxes for those who own private jets tucked in the middle of the latest version of the controversial bill. According to an article at Newsweek, as of 2012 there were approximately 11,260 private planes registered in the U.S.
If the tax reform bill does pass in its current version it will be a great benefit to those who own or lease private planes, but there’s a long way to go before we will know whether the final decision is yay or nay.
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