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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.
For more information, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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