Finance, Taxes, Insurance
IRS revisits personal use of aircraft
Although an article in The Washington Post last month implied that the Internal Revenue Service now sanctions the extensive personal use of compan

Although an article in The Washington Post last month implied that the Internal Revenue Service now sanctions the extensive personal use of company aircraft by owners and employees while the company takes a full deduction for the costs of owning and operating the airplane, several aviation tax attorneys counter that it merely sheds new light on the way the IRS views such matters.

They say the memo–called Chief Counsel Advice–that was issued by the IRS last July merely extends to S corporations and limited-liability companies what a 2001 federal court decision granted to C corporations in a separate case. “This interpretation shows how the service views those cases,” said one. “They view them as apparently applying to S corporations and to corporations where there is virtually no business use of the aircraft at all.”

Loading…