A Taxing Situation
The D.O.M. magazine team has been in Vegas this week attending NBAA-BACE 2024.
One of the big topics being discussed is the taxing situation some corporate flight departments are finding themselves in.
Just prior to NBAA-BACE, NBAA hosted its annual Tax, Regulatory and Risk Management Conference. A major topic discussed at the conference (has continued through NBAA-BACE) was the targeted IRS audits of some companies and individuals operating corporate flight departments.
In February of this year, the IRS announced it would be targeting certain individuals and corporations for claimed depreciation and deductions for their business use of aircraft.
You can read an article from NBAA discussing the topic by clicking HERE.
In what seems to be a result of this increased scrutiny from the IRS/Government, some corporate flight department employees have shared that they have been notified that their flight department will likely be shut down depending on who wins the U.S. Presidential election in November. It seems that some individuals/corporations who operate corporate flight departments are tired of the constant vilification of business aviation, and will likely choose to charter flights rather than deal with an unfriendly business aviation climate that has been encouraged by the mainstream media and some politicians.
It's a shame if that ends up happening. Even if a company or individual knows the benefits and savings of having an in-house flight department, they may end up shutting its hangar doors due to the negative perception fueled in the current media and political environment.
Thanks for reading, and we appreciate your feedback!
Joe Escobar