Do you book private aircraft charters for business travel? If so, we have some good news for you!
According to the IRS (Government, Here's what taxpayers need to know about business related travel deductions), all travel conducted for business qualifies as a business expenses, giving you the ability to you write off your flight and travel necessities. If you are curious about what qualifies as a “business” venture, then continue reading.
What qualifies a trip as a business expense?
The IRS describes a business trip as one where business is conducted at least 50% of the time. If you book a private jet charter to New York to conduct business at your New York-based branch around December 31st, you can opportunely ring in the New Year in Times Square. Did you book a private aircraft charter to Los Angles to update clients about your latest business offer and conveniently have family in the area? Carve out time prior to your travels to schedule business meetings during the week, spend time with your family on the weekend, and still have the ability to write off your entire private flight.
Perks to booking a private jet for business travel
The wonderful thing about flying private for business is the access to the entire aircraft for the full duration of your trip. When you book a private jet to Paris, France to investigate ways to expand your business overseas, your family and friends can join you onboard at no extra cost. Even though you have seven extra passengers who are not conducting business in Paris, you still have the ability to write off the entire flight as a business expense. This is because you would have had to charter that same private flight to France to complete business with or without the extra passengers onboard.
Your private charter flight is considered a business expense regardless of who is onboard as long as the one conducting business at your destination is present and working 75% of the time. Unfortunately, if no business is to be conducted on the island during your family trip to Cancun, Mexico, you will not have the ability to write off your adventure as a business expense. Prior to international business travel, you must understand the difference in write off capabilities. See IRS Publication 463 (Internal Revenue Service, 2022) for more information about international business travel.
Tips for writing your flights off as business expenses
Keep a copy of all your travel receipts for a minimum of 7 years after filing your taxes. In the off chance that your business expenses and write-offs need to be justified, you will be more than prepared. Need a copy of your flight receipt? Our accounting would be more than happy to pull any flight record or receipt for your convince. Simply email Rosa@mpijet.com for any requests.
Note: MPIJET and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Citations:
Government, I. R. S. (n.d.). Here's what taxpayers need to know about business related travel deductions. Internal Revenue Service. Retrieved March 1, 2023, from https://www.irs.gov/newsroom/heres-what-taxpayers-need-to-know-about-business-related-travel-deductions
Internal Revenue Service, D. of the T. (2022). Travel, Gift, and Car Expenses (Pub 463). Department of the Treasury Internal Revenue Service . Retrieved March 1, 2023, from https://www.irs.gov/pub/irs-pdf/p463.pdf