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Old 11-11-2008, 08:12 AM   #1  
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Default 135 Administrative Questions

Hey guys,

I have a few questions I hope to get answered about 135 ops.

Do any of you know:

Where/When/How do you pay the 7.5% federal excise tax on aircraft charters? domestic segment fee?

Do you pay a domestic segment fee per leg on aircraft under 6000#?

Do you pay a domestic segment fee on cargo operations?


Thanks guys.

-poc

Last edited by ProceedOnCourse; 11-11-2008 at 02:22 PM.
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Old 11-11-2008, 11:01 AM   #2  
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When you pay excise is aircraft greater than 6,000lbs, that's why Eclipse was trying to keep it under that mark. C421's have that fee attached when I worked at my old job. The fee was attached directly to the bid. Say the trip was 550nm round trip @ $3.41/nm. Your charge would be $1875.50 + $140.66 in excise tax. Now if you have a "in position" leg and "empty" legs, I honestly don't know if you can get out of those or not. As far as I knew, we just charged for the whole trip regardless, and then there's no questions. I'm just a pilot, and never did the bookwork, but I did use our quote system and it just ties it all in.
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Old 11-11-2008, 02:18 PM   #3  
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right.that's good stuff, but my question was. After you collect the FET from the customer, who/when/how do you pay it to the gov?thanks.
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Old 11-17-2008, 08:24 AM   #4  
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Hire a CPA?

We use and fly for many different companies, some do and some we don't charge these fees. I am not a CPA or, by any means, a tax expert but I would imagine that such a person would know.
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Old 11-22-2008, 07:51 PM   #5  
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FET on freight is 6.25% on all a/c with a MTOW of 6,000 lbs. or more. My guess is to just cut a cheque to the IRS. I've never really asked that question...I will get with accounting on Monday and find out. lol
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Old 12-01-2008, 10:03 AM   #6  
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Great, I would really appreciate that.
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Old 12-08-2008, 09:33 AM   #7  
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Our company pays it directly to the government through eftps.gov Setup an account it is easy and no reason to pay cpa. Research tax form 720 which applies to taxes for carrying pax and cargo.

Regards,

John Vaillant
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Old 12-08-2008, 12:33 PM   #8  
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Naww, it's not that easy. If I recall, there is language of "paying 13 days after the first semi-quarter" blah blah. I was in business 14 years and never did fully understand it. So, I just paid it by the 7th day after the month I did the trip. Was usually paying it early, but never got into trouble.
And be careful, if you bill catering as a line item, you need to include that in the 7 1/2 percent. I didn't and got bit.

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Old 12-09-2008, 04:18 AM   #9  
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Basically you pay every 14 days, you need to tax anything you invoice overnight fees catering, fuel surcharges everything and anything that is on that invoice that is not a government fee with 7.5% for domestic flights plus you add 3.5per leg per person. If you are traveling out of the country it simple it is just 15.4per person no percentage tax or segment fee... if you have any additional questions feel free to pm.
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Old 12-11-2008, 06:15 PM   #10  
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Thanks a lot you guys.

Always appreciated.
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