24/7 Rapid Response - On Call Transportation Attorneys | 24/7 Data Breach Response - breachresponse@lewisbrisbois.com

Legal Alerts

IRS Announces Audits of Corporate Jet Usage

New York, N.Y. (February 22, 2024) – On February 21, 2024, the IRS announced its plans to begin dozens of audits on business aircraft involving personal use. The agency indicated that these audits will focus on aircraft usage "by large corporations, large partnerships and high-income taxpayers and whether for tax purposes the use of jets is being properly allocated between business and personal reasons."

In the announcement, the IRS said: "Business aircraft are often used for both business and personal reasons by officers, executives, other employees, shareholders and partners. In general, the tax code passed by Congress allows a business deduction for expenses of maintaining an asset, such as a corporate jet, if that asset is utilized for a business purpose. However, the use of a company aircraft must be allocated between business use and personal use. This is a complex area of tax law, and record-keeping can be challenging.”

Lewis Brisbois attorneys are leaders in the business aviation industry, with deep knowledge of the relevant statutes, regulations, and other guidance, that present and publish with national industry platforms.

Please contact David Shannon, Chair of Lewis Brisbois’ Business Aviation Practice, to evaluate your organizational and operational structure as well as highlight best practices with respect to passenger classifications for income and deduction purposes.

Authors:

David Shannon, Partner and Chair of Business Aviation Practice

Daniel Feldman, Partner

Related Practices


Related Attorneys

Find an Attorney

Each of the firm's offices include partners, associates and a professional staff dedicated to meeting the challenge of providing the firm's clients with extraordinary service.