Kylie Jenner Private Jet Tax Loophole
The Deduction Queen
Kylie, raking in a staggering $130 million annually, knows her way around deductions. She employs a strategic move to bring down her taxable income by classifying purchases as qualified business expenses. And guess what she did with her jet?
Jet-Setting with Tax Code 162(a)
The magic lies in Tax Code 162(a). This code allows businesses to write off expenses if they are necessary, natural, and reasonable in the pursuit of income. In Kylie's case, she just needed to prove she uses the jet more than 50% of the time for business purposes. And oh boy, she does!
Background on the Plane Usage: Kylie frequently films Kardashian family moments on the plane, holds meetings in the air for Kylie Cosmetics, and ensures the jet is a crucial business tool.
Weighty Deductions: IRC 179
But why a jet, you ask? The IRC 179 tax code comes into play. It states that businesses can write off vehicles weighing more than 6,000 pounds. And well, a private jet fits the bill, being a vehicle in its own right.
Bonus Depreciation Magic
And here's the real coup de grâce – bonus depreciation. Kylie purchased her airborne beauty in 2020, enabling her to write off a whopping 100% of the property that year. A tax dream come true! If only we could all deduct our private jets, right?
Bonus Tidbit: Bonus depreciation is being phased out in 2023, as the IRS caught on to its popularity.
You Too Can Play the Deduction Game
While most of us may not have a jet to slash our tax bills, there are still plenty of deductions within reach. The IRC 179 and strategic business expenses can help bring down your taxable income and let you keep more of your hard-earned money.
Whether you're pro or anti-billionaire, money is undeniably a game, and Kylie Jenner clearly knows how to play it.
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