The personal use of business aircraft remains a hot topic in the aviation industry. A company may be disallowed significant deductions if there is personal use of corporate aircraft. Additionally, the employee using the aircraft for personal purposes will have income imputed to him or her as a fringe benefit. However, there exist provisions of the Internal Revenue Code that enable the experienced advisor to help a company or executive reduce the negative tax ramifications of personal flights. Additionally, the FAA has proposed an interpretation of FAR 91.501 that would permit a company to be reimbursed by an executive for non-business use for the fully allocated cost of owning and operating the aircraft if the executive’s duties meet certain requirements.
About Lapayowker Jet Counsel, P.A..:
Based in Fort Lauderdale, Fla., the law firm of Lapayowker Jet Counsel, P.A.. focuses its practice on private and corporate aviation transactions worldwide, including throughout the United States, South America, the European Union, Asia and the Middle East. The firm regularly assists clients with a variety of issues related to aviation, including the sale, purchase, regulatory analyses, financing and management of corporate aircraft.