Corporate Jets and IRS Audits: What You Need to Know

ARTICLE | July 15, 2024

Authored by Vasquez + Company

The IRS has launched a new audit initiative focusing on the personal use of business aircraft, particularly targeting the significant deductions claimed for corporate jets. With the Tax Cuts and Jobs Act's bonus depreciation provision, many companies have purchased jets, but using these for personal travel has considerable tax implications. Businesses must understand the rules for allocating flight expenses between business and personal use to comply with IRS regulations and avoid costly penalties. The article explains the IRS's focus, allocation methods for flight expenses, and necessary documentation for compliance.

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