How to Hire an Aviation Tax Advisor: When You Need One, What to Ask and Red Flags
This page is for buyers and owners deciding whether an aircraft purchase needs specialist tax help, and how to choose the right person. It does not give tax advice. It helps you hire someone who can.
When do you need an aviation tax advisor?
Not every aircraft purchase needs a specialist. A purely personal aircraft bought from a dealer in your home state, with no entity and no business deductions, may need little more than your regular preparer. The triggers below are where aviation experience pays for itself.
| Trigger | Why it needs aviation experience | When to call |
|---|---|---|
| You will claim business use, bonus depreciation or Section 179 | Aircraft are listed property with a more-than-50% test, strict logs and recapture rules | Before the purchase agreement |
| Seller, delivery point and home base are in different states | Sales tax, use tax, fly-away and nonresident exemptions depend on where and how delivery happens | Before you agree the delivery location |
| An LLC, partnership or leasing structure will own the aircraft | Related-party leasing, FAA operating rules and state tax on leases interact | Before forming the entity |
| You live in one state and hangar in another | Use tax, registration and property tax follow where the aircraft is based | Before choosing the hangar |
| Leaseback to a flight school or rental operator | Commercial use changes insurance, operating rules and tax treatment | Before signing the leaseback |
| Selling or trading in a depreciated aircraft | Recapture is ordinary income, and like-kind exchanges no longer apply | Before listing the aircraft |
| An IRS or state letter about the aircraft | Deadlines and representation rules apply | Immediately |
Why hiring before closing matters: an illustrative example
Sales and use tax is usually the largest single tax decision in a piston purchase, and it is settled at delivery. Take a $300,000 aircraft bought from a private seller, using three verified state rules:
| Where the aircraft is based or bought | Rule | Tax on $300,000 |
|---|---|---|
| Illinois (private purchase) | Aircraft Use Tax of 6.25% of the greater of price or fair market value, filed on Form RUT-75 within 30 days | $18,750 |
| North Carolina | 4.75% state rate, maximum $2,500 per aircraft | $2,500 |
| South Carolina | 5%, maximum $500 per aircraft | $500 |
The gap between those outcomes is not something you can plan around after the fact. A buyer who bases the aircraft in a taxing state generally owes that state's use tax no matter where the sale closed. Rules, exemptions and deadlines are in aircraft sales tax by state. Sources: Illinois DOR, NCDOR and SCDOR.
Which professional should you hire: CPA, enrolled agent or aviation attorney?
| Professional | Best used for | Keep in mind |
|---|---|---|
| CPA with aircraft clients | Depreciation schedules, business-use allocation, returns, state income tax conformity | Can represent you before the IRS; ask how many aircraft returns they prepare |
| Enrolled agent (EA) | Federal returns and IRS representation | Federally licensed tax specialist; confirm aviation experience and multi-state capability |
| Aviation tax attorney | Entity and lease structures, sales and use tax planning, audits and disputes | Attorney-client privilege is broader than the limited privilege for CPAs and EAs |
| Aviation (FAA) attorney | Purchase agreement, registration, Part 91 vs. Part 135 operating questions, leases | Often works alongside the tax attorney or CPA |
On a straightforward business purchase, a CPA with aircraft clients may be enough. When an LLC, a lease to your company or a multi-state base is involved, most owners use an attorney for the structure and a CPA for the returns. Neither your lender nor your loan broker is your tax advisor.
What should you ask before hiring an aviation tax advisor?
- How many aircraft purchases did you work on in the past year? Look for regular, recent aircraft work, not one deal five years ago.
- Which states do you handle for sales, use and income tax? Make sure the list covers your home, hangar and delivery states.
- How do you apply the more-than-50% business use test, including related-party leases and personal flights by owners?
- What changed for aircraft under the 2025 tax law? A current advisor will mention permanent 100% bonus for property acquired after January 19, 2025, and the 2026 Section 179 limit of $2,560,000.
- Have you defended aircraft deductions or use tax in an audit? Ask what the documentation looked like.
- What flight-log format do you want from me, and how often will you review it?
- How will you coordinate with my lender, escrow agent and insurance broker so the owner, borrower and named insured match?
- What is in scope, and what is not? For example, state filings, entity formation, registration and questions after closing.
- How do you bill, and can I have a written estimate?
- Who does the work? Partner, associate or outside specialist.
Where do you find an aviation tax advisor, and how do you check credentials?
The best referrals usually come from people who close aircraft deals every month: aviation attorneys, aircraft title and escrow companies, experienced aircraft brokers and type clubs. Ask each for two or three names, then compare who keeps coming up. Before you engage anyone, verify the credential they claim. Check CPAs with their state board of accountancy, attorneys with the state bar, and enrolled agents and other credentialed preparers in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
What should a purchase engagement deliver?
For a business-use purchase, a good engagement leaves you with documents, not just a phone call:
- A short written recommendation on who should own the aircraft and why, including how the lease works if there is one
- The sales and use tax position for your purchase, with the exemption or filing paperwork and the deadline (for example, Illinois expects Form RUT-75 within 30 days)
- Instructions for the escrow agent and lender on the buyer name, delivery location and documents needed at closing
- A flight-log template with the fields your advisor wants, and a date for the first review
- A first-year depreciation plan (bonus, Section 179 or regular MACRS) to finalize before the return is filed
Want numbers for your specific aircraft?
Share the aircraft and timeline — a financing specialist will come back with rate, term and down-payment options.
What should you bring to the first meeting?
- Draft letter of intent or purchase agreement, with seller location, delivery point and intended closing date
- Where you live, where the aircraft will be hangared, and where it will spend most of its time
- Projected annual flight hours split into business, investment, personal and commuting
- Who will own it (you, your operating company or an LLC) and who will fly it
- Financing term sheet or pre-qualification, including down payment and borrower name
- Your last two years of personal and business returns
- Existing entity documents, if an LLC or corporation is involved
How do aviation tax advisors typically bill?
There is no standard price list, and published fee ranges vary so much that they are not useful for budgeting. Ask for a written estimate based on your facts. The common arrangements are:
- Hourly: common for attorneys and for open-ended questions. Ask for the rate of each person who will work on the file and a cap or estimate.
- Fixed fee per project: common for defined work such as purchase structuring, entity formation or a sales tax opinion. Get the deliverables in writing.
- Annual retainer or return fee: common for ongoing depreciation schedules, business-use reviews and return preparation.
Treasury Circular 230, which governs practitioners before the IRS, generally prohibits contingent fees for preparing an original return. Be cautious if an advisor wants a percentage of the tax savings on your return.
What are the red flags in aviation tax advice?
- "The airplane pays for itself" or "it's free after taxes." Depreciation is recaptured as ordinary income when you sell. It is mostly a deferral.
- An out-of-state LLC as a sales tax fix, without a discussion of use tax where the aircraft is actually based. See owning an aircraft in an LLC.
- Reconstructing flight logs at year-end or for an audit. Logs must be kept at or near the time of each flight.
- A like-kind exchange for an aircraft. Since 2018, Section 1031 applies only to real property.
- An old bonus depreciation phase-down schedule quoted as current law. For property acquired after January 19, 2025, 100% bonus is permanent (IRS Notice 2026-11).
- Guaranteed 100% business use for an aircraft you plainly also fly for fun.
- Charter-style arrangements, such as letting the LLC carry members' guests for pay, with no mention of FAA Part 135 rules.
- No engagement letter, or a fee tied to the size of your refund.
Where does the advisor fit in the purchase and loan timeline?
| Stage | Advisor's role | Financing side |
|---|---|---|
| Shopping and pre-qualification | Choose the owner entity; project business use | Pre-qualification typically takes 1–3 business days |
| Letter of intent or purchase agreement | Review delivery location, buyer name and contract date | Underwriting typically takes 1–2 weeks once the lender has the agreement |
| Pre-buy, title and escrow | Confirm sales and use tax handling and exemption paperwork | Lender orders title and lien searches; insurance must name the lender |
| Closing and delivery | Document the placed-in-service date; file use tax on time | Closing is typically 2–4 weeks from application |
| First tax year | Choose bonus, Section 179 or MACRS; review logs | Lender sends the interest statement |
| Sale or trade-in | Plan the sale year for recapture | Payoff and lien release |
How this guide differs from related guides
This page covers choosing and working with a professional. The rules themselves are covered elsewhere: depreciation mechanics, qualifying business use and who should own the aircraft, the year-of-purchase deduction playbook, aircraft sales tax by state and owning an aircraft in an LLC.
Frequently asked questions
When do I need an aviation tax advisor?
Bring one in before you sign a purchase agreement if you will claim business use or depreciation, if the purchase crosses state lines, if an LLC or lease will own or operate the aircraft, or if you live in one state and hangar in another. You also want one before a sale or trade-in, and immediately if you receive an IRS or state notice about the aircraft.
Should I hire a CPA, an enrolled agent or an aviation tax attorney?
It depends on the job. A CPA or enrolled agent with aircraft clients can handle depreciation schedules, business-use allocation and returns, and both can represent you before the IRS. An aviation tax attorney is the better fit for entity and lease structures, sales and use tax planning across states, FAA operating-rule questions and disputes. Complex purchases often use an attorney and a CPA together.
How much does an aviation tax advisor cost?
Fees vary widely by market, firm and complexity, so get a written estimate. Advisors commonly bill hourly, quote a fixed fee for a defined project such as purchase structuring, or work on retainer for ongoing compliance. Ask what the fee includes, especially state filings and follow-up questions after closing. Treasury Circular 230 generally prohibits contingent fees for preparing an original return.
What questions should I ask before hiring an aviation tax advisor?
Ask how many aircraft purchases they worked on in the past year, which states they handle, whether they have defended aircraft deductions in an IRS or state audit, and how they apply the more-than-50% business use test. Ask how they coordinate with your lender, escrow agent and insurance broker, and request a written engagement letter that defines scope, fees and deliverables.
What are red flags when choosing an aircraft tax advisor?
Be wary of anyone who says the aircraft will pay for itself or be free after taxes, recommends an out-of-state LLC without discussing use tax where you hangar, suggests reconstructing flight logs after the fact, proposes a like-kind exchange for an aircraft (not allowed since 2018), or quotes the old bonus depreciation phase-down. Also avoid advisors who will not put scope and fees in writing.
Can my lender or aircraft broker give me tax advice?
Generally no, and most will tell you so. A loan broker, lender or aircraft sales broker can explain how a deal is structured and what their paperwork requires, but they are not your tax advisor. Have your own CPA or aviation tax attorney review the ownership structure, delivery location and depreciation plan, and share their instructions with the lender and escrow agent before closing.
General information as of September 2026, not tax or legal advice. Confirm with a CPA or aviation tax attorney for your situation.