Marianna Dyson Comments on Regulations Regarding Use of Corporate Aircraft in the Wall Street Journal/CFO Journal

"IRS Lays Out New Rules on Corporate Jet Use"
The Wall Street Journal/CFO Journal
08.03.12The IRS has finalized rules regarding the use of corporate aircraft for non-business purposes. The regulations, which go into effect August 1, 2012, and apply to tax years after that date, disallow tax deductions when corporate jets are used for entertainment, amusement and recreation. According to Marianna Dyson, the final rules are not much different from the proposed regulations first introduced in 2007. “With few and quite limited exceptions,” Dyson said, “the final regulations fail to adopt other taxpayer comments.” Going forward, taxpayers cannot deduct variable costs, such as fuel and landing fees, and fixed costs, such as hangar fees, pilot salaries and depreciation, when airplanes are used for entertainment purposes.
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