SIFL Tax question for small business owners

Fred Fillinger wrote in message
Your accountant needs to research whether IRS has conceded that the
SIFL rate for personal use applies also to closely-held corporations.
The rules were written for big companies with big airplanes. Where you
own 100% of the stock, a substance vs. form argument can override about
anything.

Fred F.

Fred, thanks, he is looking into it. Unfortunately, I think your
argument is right on target. It probably won't work for me. I was
wondering if anyone here had used it.

The tax rule basically allows the business to deduct the cost of the
aircraft as long as 25% of it's use is business related and that the
employee's use of the aircraft is payed for by the employee. Proper
documentation of all trips, expenses, etc. is essential. The hourly
reimbursement that employees must pay is based on the sifl formula not
on the actual hourly cost. The sifl formula results in a lower
hourly rate. The employee therefore receives use of the aircraft at
a very attractive rate.

Thanks
Dave