Tax regulations

NBAA article helps members with food and entertainment tax regulations

The National Business Aviation Association (NBAA) has had substantial engagement with the Internal Revenue Service (IRS) and the U.S. Department of the Treasury over the past few years with respect to tax regulations for dining meals. business and entertainment activities.

The Tax Cuts and Jobs Act of 2018 made significant changes to the Internal Revenue Code, including section 274, with the elimination of deductions for business entertainment expenses. Through the NBAA’s efforts with the IRS, the final settlement include important clarifications on how deductions for meals and entertainment may affect the deductibility of flights on business aircraft.

The NBAA is provide an item written by Tax Committee Chairman John Hoover regarding the impact on business aviation of IRS regulations. The article discusses the following topics that are affected by the final settlement:

  • expenses for personal meals as a non-entertainment activity
  • travel expenses for travel involving entertainment and non-entertainment activities
  • deductions for spouses traveling for non-business purposes
  • denial of 50 percent deduction for meals
  • relaxation of punitive measures for inappropriate reporting
  • the exception of adequate and complete consideration

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