How to Document Business Flights for Tax Deductions

Business use of aircraft is often deductible, but the flights must be well documented to maintain these deductions. In addition to keeping your logs and tracking the passenger flight details, the IRS requires that all business use of aircraft be documented contemporaneously and in writing.

So, what does this mean and how do you meet these requirements? 

Written and Current Information

First, the information needs to be contemporaneous, or gathered at the time of the flight. Although there are opportunities to go back and obtain additional information, such as affidavits and statements, they will focus on what was available at the time of the flight.   

Second, this information needs to be in writing. With today’s technology, this is much easier, but the idea that everything is business no longer flies with the IRS (pun intended).

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Four Ways to Document Business Flights

There are several ways to adequately document your flights, below are four common practices:

• Emails. Send an email before the flight discussing the upcoming meeting, then follow up and discuss the results afterward.
  
  
• Agendas. Draft meeting agendas before the meeting and keep meeting minutes. Consider circulating in the emails above.
  
  
• Calendars. Create a calendar invitation and include the location and attendees.
  
  
• Photography and Promotion. Social media posts, videos, pictures and other media can both help and hurt you. If you post about attending a concert or a game, but mark the flight as business, the IRS may be able to find this information and argue otherwise.
  
  

Detailed Trip Sheets

Another best practice that I recommend is to keep “trip sheets” for each flight on the aircraft. This can be a one-page document completed by someone with knowledge of the flight details. Include the passenger list, purpose of the flight and other information useful for an audit. I recommend that these be signed and dated to show they were timely created.

Although it’s important to document your business flights, you don’t want it to be burdensome. The best information-gathering process will vary from owner to owner. 

Be sure to talk to your tax advisor and include your team in the process. That way, everyone can understand their role and help make all of the necessary information available.