Advocate Consulting Legal Group, PLLC - The Aviation "TLC" Provider

Toll Free: 888.325.1942 | info@advocatetax.com
  • Aircraft Income Tax
    • SIFL
    • Aircraft Income Tax Online Tools
    • Aircraft Income Tax
  • Aircraft State & Local Tax
    • Aircraft State & Local Tax Online Tools
    • Sales & Use Taxes Articles
  • Aircraft Operations & Law
    • Aircraft Operations & Law Articles
  • YouTube Library
  • Flight Logs
  • About Us
    • Our Team
    • Employment Opportunities
    • Service Agreements
    • Service Delivery – FAQ
    • Contact Us
You are here: Home / YouTube / Youtube income tax / What is the occupied seat rule?

Written by jonl

What is the occupied seat rule?


 

Transcript:

The occupied seat rule generates out of Section 274-10, which defines personal use of business aircraft. What occupied seat rule says is the IRS is going to treat aircraft very differently than they would treat the use of other transportation equipment such as a car. That is, when an aircraft flies to a particular destination the IRS is going to look at the purpose of every passenger on that flight, and any passenger that is on there for personal entertainment purposes the IRS will deduct the pro rata share of the expenses for the entire year of the aircraft based upon the seat miles of that passenger. While in a car, you might be able to throw your kids in the back seat for a business trip you were going to take anyway, because they don’t cost you anything more, taking those children along for entertainment on a business trip to Disney may have a totally different consequence in your aircraft, because a flight that would have been 100 percent deductible for business now only becomes 50 percent deductible because of the existence of the occupied seat rule.

Filed Under: Youtube income tax

Latest Article

Corporate Jet Investor Town Hall – Finance, Tax and All That Jazz (Webinar Replay)

View a replay of the town hall by clicking the video above, or following the link here.

As you know, these are unprecedented times for business aviation. We invite you to join the Corporate Jet Investor Town Hall as a way of staying connected and informed during this period.

Moderated by Alasdair Whyte, co-founder Corporate Jet Investor, each week CJI will tackle a different issue or topic through the knowledge of as many expert participants as possible.

 » Read more about: Corporate Jet Investor Town Hall – Finance, Tax and All That Jazz (Webinar Replay)  »

Upcoming Events

There are no upcoming events at this time.

Contact Us

Toll Free: 888-325-1942
Email: info@advocatetax.com


Advocate Consulting Legal Group, PLLC. 3555 Kraft Rd. Suite 240 Naples, FL 34105 and 1300 N. Westshore Blvd. Suite 220 Tampa, FL 33607. Suzanne Meiners-Levy, Esq. (239) 213-0066. Tax Disclosure. We inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under federal tax laws, specifically including the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Privacy Policy. Terms of Use.