Originally Posted by bdschobel
Just for the record, I work with Federal income taxes for a living. I have a copy of the complete Internal Revenue Code on my desk and have actually read quite a lot of it! The law provides no special rule allowing airlines to write off the cost of air-marshal seats. Of course, they can deduct their expenses for flying planes, but they get no "special" write-off for carrying air marshals.
Bruce
When I consulted at one of the airlines, they cross charged the department I worked for full fare. The idea was that they could have sold the seat.
Am I right in assuming they could only write of the actual expense of providing that seat not what they could have sold it for? Also losses can be carried forward against income in the future.