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.

Download the NBAA Personal Use of Business Aircraft Handbook (PDF)

This NBAA publication is intended to provide members with an introduction to the tax rules and considerations that relate to the topic of personal use of business aircraft. Readers are cautioned that this publication is not intended to provide more than an illustrative introduction to the subject matter, and since the materials are necessarily general in nature, they are no substitute for the advice of legal and tax advisors addressing a specific set of facts. This version of the handbook is dated July 21, 2022, and does not incorporate any statutes, regulations, or guidance released after that date.