Can I deduct the cost of personal use of a business aircraft?

Transcript:

It’s virtually a foregone conclusion that business aircraft will be used at time for the personal purposes of a business owner or a business employee, and often, owners want to know if they can conduct that personal use. Not all personal use is deductible, but there are some occasions on which personal use of the aircraft, provided it’s not for entertainment purposes, may still be deducted so long as that flight is provided as a fringe benefit or a compensation benefit to the person receiving the flight.

Can I allow tag-along passengers to ride on my business flights?

Transcript:

It’s important when you consider allowing to have along passengers on business flights. There are several different regulatory authorities that you want to think about. There’s no complete prohibition on allowing to have along passengers on business flights although you certainly can’t sell them seats on your aircraft as tag-along passengers. The other thing you want to be mindful of is there can be significant reductions in the amount of tax benefit you get from the flight if you’re allowing entertainment passengers to ride as a tag-along even if they don’t cost you any extra dollars to place on your business aircraft.

Are there tax benefits associated with business aircraft ownership?

Transcript:

Business aircraft can play a really vital role in the successful operation of a business, and there are tax benefits available to those companies that operate business aircraft. Most significantly, there can be the ability to write off a significant amount of the initial purchase or cost investment in the aircraft in the early years of the ownership which can free up capital to make additional business investments, really provide a nice vehicle for deductions provided that the ownership structure is appropriate.

Will the personal use disallowance be the same for the aircraft owner and the aircraft operator?

Transcript:

Tax rules for personal use of business aircraft apply not only to aircraft owners, but to anyone making use of an aircraft, such as a lessee or even somebody just purchasing a charter flight. It is common that a plane may be owned by one company and leased to one or more affiliated companies. In that case each company must make its own calculations as to the consequences of personal use. Each has a distinct bucket of flights that are their flights and a distinct set of expenses.