Golf Carts to Island Divorces: 10 Notorious Tax Loopholes

By Karen Fickes and Warren Joseph of Bloomberg BNA - 2012-06-20T21:55:57Z

Photograph by Chris Ratcliffe/Bloomberg

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Corporate jets

IRS fringe benefit rules require corporate executives to report as income their personal use of company jets. While the amount of income is based on various factors, it is generally greater than the cost of a commercial flight but less than the flight's actual cost to the corporation. Unlike other situations in which a corporation's deduction of an employee benefit matches the amount that is taxable to the employee, under a 2000 Tax Court case, owners of corporate jets can deduct the full cost of operating the plane while the executive is taxed on a lesser amount.