Airplane Audits: Records, Risks, and IRS Red Flags

In this episode, Joel Crouch and Mary Wood explore the IRS's renewed focus on private aircraft audits. They explain why the IRS views airplanes as "low-hanging fruit," how data analytics and FAA records are being used to flag potential abuse, and what documentation is critical for taxpayers to maintain. From navigating the 50% business-use requirement for bonus depreciation to handling personal and entertainment flights under TCJA, they break down the nuances that can make or break deductions. Mr. Crouch and Ms. Wood also share practical strategies for creating a recordkeeping system, addressing mixed-use flights, and preparing for questions that might arise during an IRS exam. Whether you're a business owner, advisor, or practitioner, this episode provides valuable insights into reducing audit risk and protecting the tax benefits of private aircraft ownership.