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Does the IRS really use GSA mileage rates for aircraft?

Discussion in 'Business & Tax Advice' started by Capo Dei Capi, Apr 8, 2016.

  1. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    I've been looking into it and a few sites are claiming that the IRS will let companies with an accountable plan reimburse employees with the GSA mileage rate for using a private aircraft,which would be tax free income

    Is there any truth to this, because it would seem like a really awesome tax planning scheme if someone has a c corporation involved in a diverse range of niches and a fuel efficient canard style aircraft. Some of them get 30MPG at around 345MPH, and the GSA deduction is currently $1.17/mile. With Jet A fuel being sometimes lower than $3.50 per gallon the cost of operating it as well as the speed at which it could travel would make it ideal for going all over the USA on business trips for the company since its involved in so many niches.

    If its really true it could go together in a tax planning scheme with the vehicle mileage deduction by choosing to not reimburse employees but instead you take the mileage deduction of $.54/mile and use it for local business transportation.