This entry was posted on Tuesday, February 22nd, 2011 at 2:17 pm and is filed under Audio and Visual Tax Tips. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
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Personal aircraft use can take two forms, personal entertainment (PE) and personal non-entertainment (PNE). Tax treatment for PE use is in a state of flux awaiting final rules from the IRS. This presentation discusses potential tax implications for the personal entertainment use of an aircraft. PNE use or compensatory use is treated as a fringe benefit to the person benefiting from the use of the aircraft. So long as the individual reports the SIFL income (fringe benefit income), such use is considered to be business use by the company providing the fringe benefit. This video describes the various scenarios.