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Personal Use of Company Aircraft

Personal Use of Company Aircraft

by Jed R. Wolcott, A how-to guide to understanding the IRS rules and tax return reporting of SIFL (Standard Industry Fare Levels), fair-market charter-rate, and primary-purpose reporting for the employee and guest non-business use of company aircraft. Chapters discuss such elements as the 50% seating capacity rule, and SIFL rules for international flights in excess of seven days. The entertainment cost disallowance chapters include the formulas for computing the disallowance on company aircraft, discusses strategies for reducing the disallowance, and IRS record keeping requirements.


Price: $128.00

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Index of Topics:

Understanding the Rules for Imputing Income, Calculating Cost Limitations, and Securities and Exchange Commission Reporting from the Non-Business and Entertainment Use of  a Company-Owned Aircraft

  • EXECUTIVE OVERVIEW
  • COMPARISON OF BUSINESS, NON-BUSINESS, AND ENTERTAINMENT FLIGHTS
  • IMPUTING INCOME FROM PERSONAL USE FLIGHTS

Definition Of A Personal Use Flight.
Why Can't The Employee Just Pay For The Cost Of The Flight?
Applicable Aircraft.
Aircraft Operated On A Charter Certificate.
Employer-Provided Aircraft Without A Pilot.
Pilot/owner Personal Flights.
Who Is Taxed?
Charter Method (FMV) Vs. Standard Industry Fare Level (SIFL) Valuation.
Understanding SIFL.
Control Verses Non-Control Employees.
50% Seating Capacity Rule.
How To Count Passenger Seats.
Converting From Nautical To Statute Miles.
Spousal Travel Rules.
Mixed Use Flights.
Children As Personal Use Passengers.
Bona Fide Security Plan.
Use Of Fiscal Year Reporting Method.

  • CALCULATING A SIFL PERSONAL USE FLIGHT

Point-To-Point Concept Of The SIFL Calculation.
Routing Information.
Passengers And Purpose Onboard The Aircraft.
Aircraft Weight & Use Of Aircraft Multiple Tables.
The SIFL Mileage Tables.
Calculating A SIFL Personal Use Flight.

  • CALCULATING A FAIR MARKET VALUE (FMV) PERSONAL USE FLIGHT

Charter Rate Concept Of The FMV Calculation.
Routing Information.
Passengers And Purpose Onboard The Aircraft.
Employees Controlling The Use Of The Aircraft.
FMV Equivalent Charter Cost.
Use Of The FMV Satisfies The Taxable Benefit Valuation Requirements.

  • REPORTING THE IMPUTED INCOME

Reporting Imputed Income To The Employee.
Reporting Imputed Income To The Social Security Administration.
Imputed Income Is Subject To Withholding.
Imputed Income Is Not Deductible By The Company.
Reporting Imputed Income On The W-2.
Reporting When There Is No W-2.

  • AMERICAN JOBS CREATION ACT OF 2004 COST LIMITATIONS

Notice 2005-45 Overview.
Entertainment Use.
Specified Individual.
Costs And Expenses Included In The Disallowance Calculations.
Effective Date And Transitional Rules.
Special Rule For Deadhead Flights.
Record Keeping Requirements Of 2005-45.
Method Of Calculating The Cost Limitation.
Mixed Use Aircraft: Part 91 & Part 135.
Partial Business, Partial Entertainment Flights.
AJCA Effect On Bona Fide Security Plans & Aircraft Operated On A Regular Schedule.
Aggregation Of Expenses.
Flight Valuation Consistency Rule.
Excessive Public Company Remuneration.

  • CALCULATING THE COST LIMITATIONS REQUIRED BY THE AJCA

IRS Examples of AJCA Cost Limitation Calculations.

  • US SECURITIES AND EXCHANGE COMMISSION (SEC) REPORTING

Public Company Disclosure Requirements.
Executives Included In Reports.
Criteria Defining The Most Highly Compensated Officers.
Types Of Compensation To Be Reported.
Reporting Threshold.
Determination Of Incremental Costs.
Sec Revising Rules.
Summary Compensation Table.

  • CHECKLIST OF REPORTABLE ITEMS
  • FLIGHT AND TAX CALCULATION EXAMPLES
  • SUMMARY