The Internal Revenue Service (IRS) issued a notice of proposed rulemaking (NPRM) last week relating to the “deductions for entertainment use of business aircraft.” If the NPRM is made a final rule as proposed, the method of calculating deductions relating to the use of a private aircraft for entertainment purposes will change. The regulations have been in the works for some time and are a more formal and long-term answer to the IRS’s previously issued Notice 2005-45. According to NBAA, which said it met with the IRS on a number of occasions related to the prior notice, the document “skewed results and was administratively burdensome and punitive.” The association said an initial review of the new NPRM shows “improvements over previous guidance.” NBAA told AIN that operators should comment on the proposal, as it will greatly affect their deductions. Specifically, an association representative said, the issues of spousal travel and direct operating costs need to be addressed. Comments are due September 13.
IRS Issues New NPRM for Private Aircraft Use
- June 21, 2007, 10:19 AM