Do you PNE?

For many years, taxpayers could “pay” for their personal entertainment use of the aircraft, or utilize SIFL income, and deduct 100% of aircraft depreciation and expenses.

That “game” is long gone with the law changes in recent years.  Generally, any entertainment use of the aircraft – business or personal – is no longer deductible.  Paying or reimbursing the company for personal use is problematic as the FAR’s (Federal Aviation Regulations) impose limitation on the payment for transportation 

However, any personal non-entertainment use (PNE) of the aircraft can continue to receive favorable income tax treatment.  Some examples of PNE flights – bereavement, medical appointment, charitable use, etc.  Proper handling of PNE flights is critical in maximizing your aircraft tax deductions.