Businessman Riding on Bike

“Riding a Bike to Business Meeting”

I often hear the comments that you can’t write off an aircraft because you can always fly Southwest for $99 one way.

The tax code, however, does not require a taxpayer to choose the least expensive mode of transportation, or every one should be riding a bike to the next business meeting…There is a smell test – whether a taxpayer can and shall write off a business aircraft.  The technical reference is whether a business aircraft is ordinary and necessary.  Indeed, this is a very subjective test to determine if a plane is ordinary and necessary.

For a taxpayer whose office is 10 miles from his home (family practice doctor, for example), a business aircraft may be difficult to justify.

But if the doctor opens a satellite office in a rural under-served area 250 miles away from home, now a business aircraft can be easily justified.

You may need some outside the box thinking to help justify a business aircraft.

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