The National Business Aviation Association (NBAA) has just released an updated version of its Personal Use of Business Aircraft Handbook, which provides tax and regulatory compliance strategies for non-business use of corporate aircraft. “Employee security concerns and ongoing pandemic-related travel changes may lead companies to occasionally make business aircraft available to employees for non-business use,” noted NBAA senior director for public policy and advocacy Scott O’Brien.
According to O’Brien, personal use of business aircraft is a complex policy area, governed by the Internal Revenue Service (IRS), Securities and Exchange Commission (SEC), and FAA. The association’s handbook summarizes these tax rules for company reporting purposes, as well as deduction-disallowance rules for commuting and business entertainment flights under the Tax Cuts and Jobs Act of 2017. It also covers tax deduction rules for sole proprietors and employee-provided flights.
“The handbook helps companies, chief financial officers, advisors, and legal representatives to navigate this challenging regulatory environment,” said O’Brien. “This is an important resource for flight department personnel who often work with their company’s tax department and outside counsel to assist in the recordkeeping and classification of flights.”
Updates to the handbook will be examined at the 2022 NBAA Tax, Regulatory & Risk Management Conference on October 16 and 17 in Orlando, Florida, on the eve of NBAA-BACE 2022.