bsteiner[at]att.net (Bruce Steiner) wrote:
- quote -

LOL!

Katie

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Katie Jaques wrote:

- quote -

Perhaps they just fly back and forth between Dover and
Wilmington.

Bruce Steiner

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katiej_1958[at]yahoo.com (Katie Jaques) wrote:
- quote -

snip

- quote -

Of course, I said that trusting that the OP's client is not
using the airplane's expenses to offset taxable income
somewhere else, e.g. on his individual return or the return
of some related entity <G> .

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

The annual DE fee *IS* an expense. As to the liability issue
of owning a plane, he should check with a lawyer. The
corporation may not provide any protection.

Gary
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hankal[at]aol.com (Hankal) wrote:

- quote -

I can't answer the federal question off the top of my head.
However, my question is, where is this airplane, and who
uses it, for what purposes? If the airplane is hangared in
Florida, the corporation is required to file a FL corporate
income tax return for any year for which it is required to
file a federal return (which, of course, begs the initial
question).

It does sound to me as though this DE corporation is a
sales/use tax dodge. DE has no sales or use tax, so if the
corporation took possession of the airplane in DE, there
would be no sales tax. Whether there is a use tax liability
to FL or any other state depends on what happened after that
.... where did the airplane go, and when? When and where was
its first functional use? etc.

There may be no income, but surely the corporation has
expenses, even if the airplane is just parked somewhere and
never flies. However, the income tax consequences of this
arrangement are probably de minimis even if returns that
were technically required have not been filed. But there
could be significant exposure to use tax.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

This individual resides in Florida. He uses a DE address for
the DE Corp and pays the annual DE fee. Since he does not
have any expenses or income the DE State requires no
Corporation Tax Return filing. He has no filing requirement
in Florida. Maybe NC has different rules.

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- quote -

When I was in Charlotte, NC, we served as registered agents
for several hundred corporations. We found out after a
client died that his corporation only had one asset. His
BMW. He lived in New York City. Guess where he declared the
BMW was located for insurance purposes?

We found out what was going on when his daughter contacted
us after he passed away. It turns out that he didn't file NC
corporate returns for years and the only way to sell the BMW
was to file them and pay the back taxes.

The moral of the story? Compare total costs, not just taxes.

Gary

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- quote -

I suspect owner may have also ducked some nasty state sales
taxes. States do check this stuff out for big ticket items
like aircraft. Be sure all the steps are clean!!.!

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hankal[at]aol.com says...

- quote -

There have to be expenses. Delaware imposes taxes on
corporations. Regardless, the corporation needs an EIN and
must file the proper federal forms.

Gary

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You can probably X figure out X which letters to X delete to
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Owner of an aircraft registered it in a Delaware Corporation
for liability reasons. The Corporation does not have a
Federal ID number. Question-- Does he have to file a Federal
tax return? No income and no expenses.

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