Page 17 - March 25

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. KA
Daniel Cheung, CPA, is the principal
of Aviation Tax Consultants. Daniel is
a board member of Angel Flight West
(angelflightwest.org) and he encourages
readers to identify a charity that aligns with
one’s values and enjoy some very satisfying
flying!
MARCH 2025 PHOTO CREDIT: MINDIANA JONES
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.
KING AIR MAGAZINE •
15