Owning an aircraft through a leasing activity is popular for several reasons. You can

defray the costs of ownership by leasing out to a third-party charter company,

defer sales and use tax by purchasing an aircraft and leasing it back to your company, and

own the aircraft in a separate entity for increased liability protection.

Offsetting those upsides, however, are the hobby loss rules that can not only limit your benefits, but cause you to pay unfair taxes.

IRS Target

The IRS came out earlier this year with an announcement that it will target private jet usage ... Log in to view full article.