Media Coverage
Source: ProPublica
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
04.05.23
The ultrawealthy often use the tax code to subsidize their luxury travel, claiming millions in write-offs for private jets ostensibly used “mainly for business.” Many blur the line between business and pleasure, taking lavish trips while still deducting expenses like fuel, crew and depreciation. These deductions can far exceed any revenue the planes generate, revealing how easily the tax system can be leveraged for personal benefit.
Michael Kosnitzky, co-leader of Pillsbury’s Private Client & Family Office practice, said his wealthy clients often own a business, such as an art gallery, in the same area where they own a vacation home, and if the main purpose of a flight there is to attend that business, jet owners must make that as clear as possible.
“I advise my clients to go to their secondary business location first” upon landing, he said, as a way to help build the case.
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