Please ensure Javascript is enabled for purposes of website accessibility

Blog

What is a personal use disallowance?


 

Transcript:

A personal use disallowance is a disallowance of aircraft operating expenses, that would otherwise be taken on the return, that results from personal use of the business aircraft. Under section 274-10, there is a formula in how personal use disallowances are taken, and honestly, they’re surprising punishing. That is, it is an overall multiplier taken across all of your use, based upon any individual personal use of the aircraft, so it can be significant reduction in the value of the business deductions. It is a required piece of section 274-10, and is very specific to aircraft.

Advocate Covers:

Our Results

Service Agreements

Small Piston Comprehensive Service Agreement

For Piston Aircraft with a gross takeoff weight of less than 6,000 lbs and costing less than $500,000 – $3,000 per year

Large Piston Comprehensive Service Agreement

For Piston Aircraft with a gross takeoff weight of more than 6,000 lbs or costing more than $500,000 – $5,000 per year

Small Turboprop Comprehensive Service Agreement

For Turboprop Aircraft with a gross takeoff weight of less than 12,500 lbs, and not subject to “truth in leasing” – $7,500 per year

Our Team

Meet the Attorneys

Jonathan Levy

Shareholder

Suzanne Meiners-Levy

Shareholder

Joseph Quackenbush

Managing Attorney

Letisha Bivins

Managing Attorney

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

Contact Us

Get in Touch
With Us

Get in Touch