Exploring the Tax Implications of Owning Aviation Property

Owning aviation property may give you unmatched flexibility and long-term financial upside, but it also brings complex tax rules that can quickly get expensive if you’re not prepared. Whether you’re purchasing a hangar, an aircraft, or an entire aviation facility, every decision comes with financial consequences. If you’re managing or acquiring aviation assets, you need a firm grasp of sales and use tax, depreciation strategies, personal-use limitations, and audit risk. This article unpacks the major tax considerations so you can keep your operations legally compliant, financially optimized, and always a few steps ahead of the IRS. Sales and Use Tax: Know Your State Rules Before You Buy When you buy aviation property, the first tax to think about is sales tax—and that applies not just to the aircraft itself but sometimes to hangars or related improvements. Each state has its own policy on this, which means you can’t assume what worked for someone else will apply to your deal. In some p...