As we roll into October, it is a good time to review your aircraft usage for 2026 and make sure you are on track for your tax goals. There are a few things you can do this time of year to avoid unwanted surprises when tax time comes.
If you took bonus depreciation on your aircraft in a previous year, or plan to take bonus depreciation this year, now is a great time to check your Qualified Business Use (QBU). To qualify for accelerated depreciation methods, such as bonus depreciation, an aircraft must be predominantly used in QBU of the business every year.
QBU is defined differently for different businesses, and it is important to understand what is required. By reviewing your logs now and meeting with your aviation tax advisor, you can identify any usage shortfalls and plan accordingly for year-end travel.
It is also a good idea to review the flight documentation and make sure you have what you need in case of an audit. In my previous article, Flight Documentation (March 2025), I discussed the documentation requirements for business use of the aircraft. It is much easier to pull this information while it is recent and fresh in your mind, and it gives you time to add additional information if needed.
Reviewing your flight logs and tax records now will make year-end much easier. You will have time to adjust your usage if there are shortfalls on your QBU, and you will have less to do at year-end when it is time to provide the information to your tax advisor. I highly recommend setting aside time with your aviation tax advisor to review your year-to-date activity and avoid any unwanted surprises.