Section of Taxation Publications
  VOL. 54
NO. 2
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 Note: The following is an excerpt from the introduction to the article as published in The Tax Lawyer. Author citations have been omitted for brevity. Tax Section members may read the article in its entirety in Adobe Acrobat format.

Business Expense Deduction for Private Jet Allowed if Reasonable: Kurzet v. Commissioner

J. Taylor McConkie


In Kurzet v. Commissioner, the Tenth Circuit held that the Tax Court erred in determining that expenses attributable to the use of the taxpayers’ Lear jet were not deductible pursuant to section 162(a). The Tenth Circuit concluded that the Tax Court improperly treated the amount of depreciation claimed on the jet when it considered whether the expenses the taxpayers sought to deduct were ordinary and necessary. Because the airplane was used for trips among several properties owned by the taxpayers, it was necessary for the court first to determine whether those properties were held for personal or business and investment use.

Part I of this Note presents the factual background and statutory framework of the Kurzet case. Part II explains the opinions of the Tax Court and the Tenth Circuit. Part III discusses the implications of the Tenth Circuit’s decision as it relates to the method for determining deductible expenses of an airplane used partly for business purposes.


Published by
Section of Taxation, American Bar Association
With the Assistance of
Georgetown University Law Center


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