 October 2007 Release
October 2007 Release PDF
Updated FARs PDF Files
Now available for download in pdf format:
Part 119 2006 Supplement
Part 135 2006 Supplement
 View Seminar Information
Jackson, Wade & Blanck, L.L.C. is proud to announce the newest Associate to our firm, Dillon L. Strohm.
On December 28, 2006, the Federal Aviation Administration distributed the revised Operations Specifications (OpSpecs) A008. All Operators have until March 15, 2007 to comply with the new changes. Any contracts drafted prior to the release, were based on speculation of what A008 would contain and may not comply with the final A008 specifications.
For more information, see the following PDF File: Revised Operations Specifications A008 and A002
For information on Circular 230, see the following PDF File: Circular_230_6-05.pdf
Recent IRS Revenue Ruling on passive activity rules conflicts with FAA regulations and is likely to confuse the industry, leading to illegal lease structures.
For more information, see the following PDF File: Recent IRS Revenue Ruling
On October 22, 2004, the American Jobs Creation Act of 2004 was signed into law. Hidden among the many provisions of this law is a provision which radically alters our prior advice to clients regarding tax treatment for personal use of corporate aircraft.
Summary Of Personal Use Change in Jobs Act Section 907:
For Specified Individuals, the Company (Public Or Private) Cannot Deduct Expenses (Direct Operating Costs certainly, but Fixed?) beyond the amount imputed to the Specified Individual. This amendment to IRC § 274 became effective after October 22, 2004.
“Specified Individual” = 10% Beneficial Owner and/or Officer or Director.
American Jobs Creation Act of 2004 (H.R. 4520)
TITLE VIII--REVENUE PROVISIONS Subtitle D--Other Revenue Provisions
SEC. 907. LIMITATION OF EMPLOYER DEDUCTION FOR CERTAIN ENTERTAINMENT EXPENSES.
(a) IN GENERAL.--Paragraph (2) of section 274(e) (relating to expenses treated as compensation) is amended to read as follows:
"(2) EXPENSES TREATED AS COMPENSATION.--
"(A) IN GENERAL.--Except as provided in subparagraph (B), expenses for goods, services, and facilities, to the extent that the expenses are treated by the taxpayer, with respect to the recipient of the entertainment, amusement, or recreation, as compensation to an employee on the taxpayer's return of tax under this chapter and as wages to such employee for purposes of chapter 24 (relating to withholding of income tax at source on wages).
"(B) SPECIFIED INDIVIDUALS.--
"(i) IN GENERAL.--In the case of a recipient who is a specified individual, sub-paragraph (A) and paragraph (9) shall each be applied by substituting `to the extent that the expenses do not exceed the amount of the expenses which' for `to the extent that the expenses'.
"(ii) SPECIFIED INDIVIDUAL.--For purposes of clause (i), the term `specified individual' means any individual who--
"(I) is subject to the requirements of section 16(a) of the Securities Exchange Act of 1934 with respect to the taxpayer, or
"(II) would be subject to such requirements if the taxpayer were an issuer of equity securities referred to in such section."
(b) EFFECTIVE DATE.--The amendment made by this section shall apply to expenses incurred after the date of the enactment of this Act. [The Bill was signed by President Bush on Friday, October 22, 2004]
FARs Explained available for purchase:
FARs Explained Part 61, 91 with Subpart K is $39.95
FARs Explained Part 1, 21, 43, 65, 145 and 147 is $39.95
FARs Explained Part 119 and 135 is $29.95
FARs Explained Part 121 (CD-Rom format) $95.99
Please contact us at (913)338-1700 or by e-mail at to purchase FARs Explained. If you would like to send us a check along with your order, please make the checks payable to Jackson, Wade & Blanck, L.L.C. and mail to 21628 Midland Drive, Shawnee, KS 66218.
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