(August 9, 2012) Jet Linx – After five years in a proposal format, the IRS issued a final decision on the regulation for tax deductions for non-business, “entertainment” use of private jet charter aircraft. The IRS ruled in favor of disallowing tax deductions including variable costs, such as fuel and landing fees, and fixed costs such as depreciation, hanger fees and pilot salaries. NBAA senior manager for financial tax policy Scott O’Brien commented that the “codified changes appear to be little changed from the 2005 notice and what people are doing now for entertainment flights should not need to be changed.” O’Brien complained that the “calculations for disallowances are quite complicated and burdensome for operators.” The IRS is still considering one NBAA-provided suggestion which was for a Safe Harbor rate, making it easier to calculate disallowances for private jet charter operators.