Come Fly with Me—But It’ll Be Taxable

It’s not unusual for large employers to own or lease private jets to transport their top executives to business locations. All business travel is a tax-deductible business expense (and generally the costs related to the jet), but what if there’s a personal element to the travel? Maybe the individual or individuals travel private for security reasons? Or maybe they bring their spouses? Maybe the travel purpose is part-business, part-personal, or even wholly personal? Treasury Regulations address the special valuation rules for aircraft travel of these sorts. But note that the IRS has a special interest in auditing this kind of travel.

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