In the Media
Ruth Wimer Speaks at the 2022 NBAA Tax, Regulatory & Risk Management Conference
In the Media
Ruth Wimer Speaks at the 2022 NBAA Tax, Regulatory & Risk Management Conference
October 19, 2022
Winston & Strawn Partner Ruth Wimer co-presented at the 2022 National Business Aviation Association Tax, Regulatory & Risk Management Conference, where she provided insights to frequently asked questions associated with determining the nature of trips onboard company aircraft.
Classification of flights taken on company aircraft as business use, business entertainment use, personal entertainment use, or personal non-entertainment use is important in determining deductions or disallowances and Standard Industry Fare Level (SIFL) costs.
“If the individual traveled to entertain clients, or to secure new business, their mission was for a business purpose,” Ruth said. “There will be no SIFL and costs will be disallowed.”
Questions from audience members included how COVID-19 and the increased number of executives now working remotely may have changed business commuting travel.
“There’s no change in commuting guidance, but there will be a change regarding primary work location,” Ruth explained. “If the CEO works [from home] and sustains that as their primary work location, where they go from there to any other business location will be a business trip.”
When asked about who holds the responsibility within the company to classify the use of aircraft she stated, “Having worked with flight departments a lot, I can tell you they are virtually always tasked with providing that information.”
Ruth also noted that factors including security concerns may play a part in determining the categorization of flights, “increasingly we’ve seen threats on executives’ lives, not the least of which come from the employees within that company.”
Read National Business Aviation Association's coverage of the conference.