Occasionally a business aircraft is made available to employees for reasons not directly related to the business of the company. Aircraft operators must be familiar with the complex tax, regulatory and recordkeeping implications of these flights.
The NBAA Personal Use of Business Aircraft Handbook is a comprehensive resource that details the tax rules for companies to calculate the amount of the taxable fringe benefit to report to their employees, directors and independent contractors who use a company-provided aircraft for non-business flights.
The handbook also addresses tax rules dealing with the calculation of a company’s nondeductible expenses under the entertainment disallowance as amended by the American Jobs Creation Act of 2004. Finally, the handbook details changes to the tax treatment of commuting flights and other deduction limitations enacted as part of the Tax Cuts and Jobs Act of 2017.