David Shannon, Dan Feldman Join Business Aviation Advisor Magazine Podcast to Discuss Bonus Depreciation
New York, N.Y. (March 16, 2023) - New York/Fort Lauderdale Partner David Shannon and New York/New Jersey Partner Dan Feldman recently joined Business Aviation Advisor Magazine’s “Above & Beyond” podcast to discuss how aircraft owners may solidify their bonus depreciation position. The episode – titled “Maximize Your Benefit, Minimize Your Risk,” and hosted by Ryan Waguespack – covers a range of topics, including key terms and requirements in the bonus depreciation provisions of the Tax Cuts and Jobs Act (TCJA), relevant categories of aircraft travel (e.g., business non-entertainment, business entertainment, personal entertainment, personal non-entertainment, commuting), and how best to prepare for an IRS audit.
Noting that TCJA’s bonus depreciation deduction is “a very favorable rule,” Mr. Feldman explained the importance of understanding the practical implications of the law. He described that if an aircraft owner enters into a purchase agreement for an aircraft that is “placed in service” later that same year, the owner may be eligible for 100% bonus depreciation. He noted, “It’s critical that our clients understand what the requirements are and that they satisfy those requirements so they’re entitled to the higher bonus depreciation figure for the year that [the aircraft] is actually placed in service.” Mr. Shannon added, “There are millions of dollars on the line. . . . Tax deductions help drive our industry.”
In addition, in discussing the advice they provide to clients seeking the bonus depreciation, Messrs. Feldman and Shannon said that they counsel clients to, among other things, substantiate travel with documentation. Mr. Shannon explained, “Remember, you’re keeping these records for an IRS auditor sitting across the table from you that is going to happen years from now. In that meeting, you don’t want to have to scramble to recreate your documents. . . . Remember, it’s our burden to substantiate the deduction, not the IRS’ burden.” Furthermore, Mr. Feldman advised, “On these tax matters, definitely don’t go about it without the proper advice and counsel.”
Mr. Shannon serves as chair of Lewis Brisbois’ Business Aviation Practice and as a member of its Corporate Practice. An industry recognized resource regarding the federal tax requirements for obtaining the bonus depreciation deduction, he has extensive experience structuring the purchase and sale of large long-range business jets and helicopters for Fortune 500 companies, large international corporations, ultra-high net-worth clients, and family offices.
Mr. Feldman is a member of Lewis Brisbois’ Business Aviation, Executive Compensation & Employee Benefits, Mergers & Acquisitions, and Tax Practices. His business aviation experience covers legal, tax, and practical considerations in planning for efficient ownership and operational structures. Further, he has provided executive compensation advise to public and private companies entering into mergers and acquisitions, as well as directly advised executives with complex compensation and equity structures.
Listen to the full Business Aviation Advisor podcast here.