Since the enactment of the Tax Cuts and Jobs Act (TCJA) of 2017, one concern is the disallowance of a deduction for the entertainment use of an aircraft.

One way to maximize aircraft-related deductions for an aircraft owned by a business entity is to make a special election to use the straight-line depreciation method solely for purposes of calculating the depreciation disallowance related to the entertainment use of the aircraft. This election limits the base for computing the disallowed amount of first-year depreciation from 100% to just 8.33% of the aircraft asset’s unadjusted basis. Entertainment use of the aircraft includes personal entertainment travel of a specified individual (generally an officer or owner).

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