Q&A of the Week February 28, 2024

Question

How does the IRS plan to crack down on corporate jet usage?

Answer

The IRS has announced its plan to increase investigations of large corporations and top earners. The IRS believes that some companies overstate business deductions when corporate aircraft are used for mixed business and personal travel. So, they pledge to conduct more audits of corporate jet usage. 

There are reportedly over 10,000 corporate jets that operate in the U.S. The IRS plans to begin by auditing 36-48 large corporations and complex partnerships. 

Business use of corporate aircraft is a valid deduction. However, there needs to be accurate records of business versus personal travel.

If you have questions about corporate jet usage and taxation, please consult a tax professional.