New IRS Tax Regulations for personal use of business aircraft may complicate a company’s tax implications, especially when it comes to “entertainment use” of a business-owned aircraft, according to
Tax-Time Awareness Re: Entertainment Use
Key Takeaways:
- New IRS tax regulations complicate deductions for "entertainment use" of business-owned aircraft, disallowing significant operating costs.
- The disallowed deductions can extend beyond direct flight costs, impacting deadhead flights and aircraft depreciation recapture.
- Companies can avoid these entertainment-use tax implications by chartering an aircraft for entertainment purposes instead of using their own.
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