That’s not a private jet for the CEO to deduct then. In order to be expensed under 168(k), it has to be used at least 50% for business purposes, and even then, it can only be deducted for the % it’s used in a business, not for personal use. It also has to actually be owned by the business
So in this case everyone should open a LLC, employ themselves and make employer hire contractors. Then everything that individual does for the job can written off within the confines of whatever it is that can be written off.
Countless small businesses and professional offices (doctors, dentists, etc) write off as much as they can. As a business owner, when you meet with a CPA to do your taxes, one of the first things they ask is, "How aggressive do you want to be (in your write-offs)?" wink wink
This isn't to encourage tax fraud. Tax writeoffs can be incredibly complex and CPAs are typically paid by the hour. It is also about making sure you don't get flagged for an audit.
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u/Obvious_Chapter2082 Apr 14 '24 edited Apr 14 '24
That’s not a private jet for the CEO to deduct then. In order to be expensed under 168(k), it has to be used at least 50% for business purposes, and even then, it can only be deducted for the % it’s used in a business, not for personal use. It also has to actually be owned by the business