The business use of corporate aircraft has been the subject of recent Congressional and media scrutiny. While these are technical tax matters, Flight Department personnel should have a high-level understanding of three primary tax factors that may affect how your company utilizes its aircraft:
SIFL stands for “Standard Industry Fare Level” and is a rate structure set by the IRS to determine fringe benefit income for personal use of company-owned aircraft. When employees, directors and guests receive personal use of a company aircraft, the IRS views it as a taxable fringe benefit for inclusion in their personal tax returns. It is often referred to as "imputed income".... Download full white paper
In October 2004, Congress passed the American Jobs Creation Act. It can significantly affect the deductibility of your company's aviation expenses.
The new law limits deductions associated with non-business travel of executives and directors, and requires a company to track the business purpose of each passenger on every flight. This makes the process much more complicated, and involves four complex “weighted average” calculations".... Download full white paper
As a member of a flight department, you are familiar with federal excise tax, as it may appear on bills for charter flights or fuel. However, the IRS considers many types of Part 91 operations to be commercial and subject to the transportation.... Download full white paper
Our integrated software automates the calculations above. To learn how we can help you, tell us about your organization.
Note: Your aviation tax matters should be handled by a qualified tax professional within your company, or through external tax advisors. The explanations below are highly summarized and should not be substituted for the advice of tax or legal advisors regarding your specific facts. Qualified tax professionals may review our Tax Manager software and its capabilities here.
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