Having been involved in the general aviation industry for over two decades, I have always recognized the positive contributions our industry provides to society. Whether it is responding to natural disasters, transporting veterans and ordinary folks needing medical treatments or relocating pets and wildlife – pilots and aircraft owners, fixed base operators and numerous other stakeholders in our industry step up to provide invaluable support.
The Internal Revenue Code offers support for aircraft owners who fly for charitable organizations. For aircraft owners who use their aircraft in a business, tax deduction is available for a variety of charitable uses of the aircraft. With tax law changes in recent years, business owners can deduct the full costs of operating the aircraft when the charitable flights are handled correctly.
Tax treatment for an individual aircraft owner
The flight needs to be conducted for a qualified charity. Numerous organizations are registered with the Internal Revenue Service as qualified charities. Educational, humanitarian and religious organizations generally qualify. An inquiry with the group that you fly for can confirm its status.
Deductible charitable flights must be directly related to a qualified charity’s exempt purposes. Flying a patient for medical treatment, organized by a qualified charity, will be a tax deductible flight. Flight to a charity fundraiser gala or flying a charity’s board member to attend a board meeting is not considered tax deductible charitable flight.
Only direct operating expenses can be deducted – fuel and oil. If you purchase a special insurance policy for the charitable flight, this premium is deductible. Any fixed costs cannot be deducted. You also cannot deduct the value of the time that you spend on a flight.
Deductible expenses for your charitable flying can be deducted on Schedule A, Itemized Deductions, on your personal income tax return, Form 1040.
Tax treatment for a business aircraft owner
The general rule for business aircraft deductions is that the flight is conducted for business travel. By definition, a charitable flight is not a business flight. With the recent changes to the tax code, however, a business owner can now take full tax advantage of certain non-business flying, defined as personal non-entertainment flight.
A PNE flight is a personal flight that is not for the entertainment of the taxpayer. A charitable flight will qualify as a PNE flight (despite the significant personal satisfaction and joy a taxpayer will experience). Medical and bereavement travel are other examples of PNE flights.
A PNE flight is treated as a tax-deductible compensation use of the aircraft by the taxpayer. Valuation of this compensation can be based on the SIFL (standard industry fare level) method. The valuation rate is published and updated by the IRS every six months. SIFL income shall be reported to the taxpayer as a noncash fringe benefit. By reporting the SIFL income to the taxpayer, the charitable flights are essentially fully tax deductible.
Income tax treatment can vary based on your corporate and aircraft ownership structure. Consult with your tax advisor for the proper treatment of your charitable flying.
Attending King Air Gathering in Phoenix?
If you’ll be in Phoenix for this year’s King Air Gathering, March 19-22, Jet Center Foundation invites you to stay through Saturday and attend a night of elegance and generosity benefiting Angel Flight West, whose volunteer pilots fly people to medical appointments at no cost to the passenger.
The Arizona Jet Center Hangar Party 2025 is 5 to 9 p.m. on Saturday, March 22 at the Southwest Aero Hangar at Scottsdale Airport. All-inclusive tickets are $200 and include a glamorous night with a reception, dinner, open bar and live music, all set among exotic and collector cars, airplanes and fine art.
Learn more and buy tickets at jetcenterevents.com.