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Corporate Jet Usage Among Executives
Executives in corporate America have long been known to utilize corporate jets for personal use. However, a recent analysis by the Wall Street Journal reveals that this practice has increased significantly in recent years. The study, which examined data from the corporate intelligence firm Equilar, found that S&P 500 companies spent over $50 million on personal plane travel for high-level executives in the past year. This amount is double what was spent in 2019.
Top Flyers Among Executives
Among the most frequent flyers identified in the analysis were prominent figures such as Reed Hastings, Greg Peters, and Ted Sarandos, who are the founders and co-CEOs of Netflix. Additionally, Disney CEO Bob Iger and outgoing Boeing CEO Dave Calhoun were also named as frequent users of company planes. Collectively, these executives reported taking $3.5 million in personal trips on company jets. The analysis further revealed that the cost of such travel would be significantly higher if these individuals were to charter a plane on their own.
In response to scrutiny from a previous Wall Street Journal investigation, Boeing acknowledged that executives had received $500,000 more in corporate jet benefits than previously disclosed. It is important to note that Dave Calhoun is required to use a company plane for all travel as per Boeing policy.
IRS Scrutiny on Corporate Jet Usage
The Internal Revenue Service (IRS) has ramped up its efforts to monitor the use of company jets for personal trips. IRS Commissioner Danny Werfel expressed concerns that the allocation of jet usage between business and personal activities may not be accurately reported. This raises questions about the potential misuse of business aircraft for personal purposes and the associated tax implications.
According to Reuters, Werfel highlighted that the personal use of corporate jets by executives and other individuals could have significant tax consequences for both personal and business deductions. The IRS is actively investigating instances where business aircraft are being utilized for personal travel without proper allocation of expenses, potentially leading to tax implications for the individuals involved.
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