Page 439 - Small Business IRS Training Guides

Tax Cuts and Jobs Act

Provision 13822

Amounts Paid for Aircraft Management Service

Overview

Introduction

Section 13822 of Public Law 115-97, known as the Tax Cuts and Jobs Act (TCJA), created an exemption from federal
excise tax for certain payments made by an aircraft owner (or, in certain cases, a lessee) related to the management and
operation of aircraft. The exemption is codified as IRC § 4261(e)(5)

This exemption generally applies to maintenance and support of the aircraft owner’s aircraft, and on flights by the aircraft

owner on their own aircraft.

Objectives

At the end of this lesson, you will be able to:

• Determine when payments for aircraft management services are exempt from federal excise tax under IRC § 4261

and IRC § 4271.

• Determine what types of payments for aircraft management services are exempt from federal excise tax under

IRC § 4261 and IRC § 4271.

• Determine when federal excise taxes under IRC § 4261 and IRC § 4271 are due on amounts paid for charters on
managed aircraft.

73233-102 13822-1 Tax Cuts and Jobs Act