Most business aircraft are used for a personal trip every now and then. This personal use will generally have consequences on the company and on the employee.

TAX CONSEQUENCES TO THE EMPLOYEE
The employee will generally be required to treat the value of the personal use as additional compensation [see The SIFL Rules].

TAX CONSEQUENCES TO THE COMPANY
Occasional personal use should not have a tax impact on the company, as long as the use is properly reported. (Although the IRS has disallowed deductions associated with the cost of flying customers to a hunting lodge.) Frequent personal use of a company aircraft can lead to problems with claiming deductions, particularly if business useage to drop to less than 50%. In the worst case, the IRS could argue that the principal stockholder has received a "constructive dividend", which would result in income to the stockholder and no deduction for the company.

FAA LIMITATIONS ON CHARGING
Many companies attempt to limit personal use by charging for the use of the aircraft. However, according to the FAA, such charges for transportation are not allowed under Part 91. One solution is to use a time-share agreement, but this is not always practical.