Please ensure Javascript is enabled for purposes of website accessibility


How does personal use of a business aircraft affect tax treatment?



Income tax deductions for aircraft depend on business use. As a result, personal use will always have a negative impact, although to what degree depends upon the exact structure and nature of the use. When a company plane is used personally by a reasonably compensated employee, he or she has taxable income, reflecting that something of value was given by the company. An election is available called the Standard Industry Fare Level rule to compute this income through a favorable formula that typically equals less than the company’s total cost in providing a flight. Further, if the passenger is treated as a so-called “specified individual,” generally meaning an owner or a high-ranking person, and the flight was for personal entertainment or recreation, it will cause a portion of the company’s aircraft costs for the year to be non-deductible. These calculations are quite involved and should not be undertaken without professional assistance.

Advocate Covers:

Our Results

Service Agreements

Piston Aircraft Comprehensive Service Agreement

For Piston Aircraft  – $5,000 per year

Small Turboprop Comprehensive Service Agreement

For a single Turboprop Aircraft costing less than $2,000,000 – $7,500 per year

Large Turboprop Comprehensive Service Agreement

For Turboprop Aircraft costing more than $2,000,000 – $10,000 per year

Our Team

Meet the Attorneys

Jonathan Levy


Suzanne Meiners-Levy


Joseph Quackenbush

Managing Attorney

Richard Yan

Managing Attorney

Do you love aircraft? Work with our team of professionals!

Contact Us

Get in Touch
With Us

Get in Touch