IRS Recordkeeping Essentials For Aircraft Owners

The IRS continues to scrutinize the use of privately owned aircraft with many active audits pending.¹ In 2024, the IRS launched a campaign to audit high-net-worth taxpayers – including large corporations, large partnerships and high-income taxpayers – claiming business deductions for private jet use.² Aircraft use by tax-exempt organizations is also under scrutiny and vulnerable to IRS audits.³

Expenses related to assets used for a business purpose, including aircraft owned by an entity or individual, are generally deductible. However, if the aircraft is also used for personal or other nonbusiness purposes by owners or employees, the business and nonbusiness use must be apportioned, and deductions are generally allowed only for business use.