These tax laws may determine if governor's flights are taxable

A quick rundown of the U.S. tax law that could apply to Illinois Gov. Rod Blagojevich's use of state aircraft:

• Taxation of fringe benefits: "Gross income includes compensation for services, including ... fringe benefits. ... Examples of fringe benefits include ... a flight on an employer-provided aircraft. ... A fringe benefit provided in connection with the performance of services shall be considered to have been provided as compensation for such services."

More coverage Stories Flying above IRS' radar? Study intentionally conservative Passengers: Who's on board? Certain IRS rules may lighten bill for taxpayers These tax laws may determine if governor's flights are taxable

Source: U.S. government, http://tinyurl.com/yqu3f2

bull; Traveling expenses: "Only such traveling expenses as are reasonable and necessary ... may be deducted. If the trip is undertaken for other than business purposes, the travel fares ... are personal expenses. ... If a taxpayer travels to a destination and ... engages in both business and personal activities, traveling expenses ... are deductible only if the trip is related primarily to the taxpayer's trade or business. ... Where a taxpayer's wife accompanies him on a business trip, expenses attributable to her travel are not deductible unless it can be adequately shown that the wife's presence on the trip has a bona fide business purpose (not) some incidental service."

Source: U.S. government, http://tinyurl.com/29vsof