The tax code passive-loss rules pose a big hurdle to deducting losses from the business use of your aircraft.

Even with careful planning, you might find yourself stuck with passive losses that you can’t use to offset income from other sources.

In this article, you will find tax strategies that will help you deduct your aircraft losses.

Passive Activity Limitations Explained

The passive activity loss limitation rules apply to individuals, estates, trusts, closely held C corporations, and personal service corporations. Internal Revenue Code Section 469 provides that passive losses can only offset passive income and that any excess is disallowed and carried forward to future tax ... Log in to view full article.