IRS To Publish Notice on Personal Use

 - October 9, 2006, 5:52 AM

At press time, the Internal Revenue Service had yet to officially publish IRS Notice 2005-45, Deductions for Entertainment Use of Business Aircraft. This notice is intended to provide aircraft operators guidance on revised rules for computing the deductible amount of expenses for personal use of a corporate aircraft. The new rules essentially reverse a 2001 decision that allowed all incurred expenses to be deducted for a personal-use flight as long as the fair market value of the flight was included in the employee’s gross income for income tax purposes.