Transcript:
Qualified business use is a term of art when considering business aircraft and it is most commonly used in reference section 280F of the IRS code. Qualified business use is the type of business use that is going to apply towards at least 25% of the use if you intend on taking makers accelerated depreciation or bonus depreciation on your aircraft. Business use that doesn’t fall into the definition of qualified business use is business use through a related party lease. It’s basically a tax trap that the IRS has in place that may not allow you to deduct otherwise standard use of the aircraft because of that existence between the related party lease, so you want to make sure when you’re using your aircraft for business, that you don’t have a structure that converts business use from qualified business use that keeps you on an accelerated schedule to something that would not be qualified business for IRS purposes.