Capital Gain/Loss when Selling Gliders?

[Six-Seven Romeo]

I searched in RAS and didn't find anything about taxes.

I live in a state where they have sales tax on aircraft and when buying a glider for tens of thousands of dollars this can be a major impact. Maybe I need to move to Delaware and incorporate!

Sales tax aside, what about capital gain or loss when selling a glider? This certainly applies to personal property (i.e. your home). Does it apply to a $100K glider or is an aircraft more like an automobile? If I sell it for more, then do I have to declare the capital gain? Conversely, it is more likely that I will sell it for less so can I claim a capital loss? Or is this only is the aircraft is related to a business?

So many questions. Expiring minds want to know.

Thanks, John

[Craig Reinholt]

On Tuesday, March 1, 2016 at 7:59:29 AM UTC-8, Six-Seven Romeo wrote:
> I searched in RAS and didn't find anything about taxes.
>
> I live in a state where they have sales tax on aircraft and when buying a glider for tens of thousands of dollars this can be a major impact. Maybe I need to move to Delaware and incorporate!
>
> Sales tax aside, what about capital gain or loss when selling a glider? This certainly applies to personal property (i.e. your home). Does it apply to a $100K glider or is an aircraft more like an automobile? If I sell it for more, then do I have to declare the capital gain? Conversely, it is more likely that I will sell it for less so can I claim a capital loss? Or is this only is the aircraft is related to a business?
>
> So many questions. Expiring minds want to know.
>
> Thanks, John

Advice on RAS wouldn't be my "go to" for information on this subject. Talk to your tax accountant.

[Dan Daly[_2_]]

On Tuesday, March 1, 2016 at 11:10:40 AM UTC-5, Craig Reinholt wrote:
> On Tuesday, March 1, 2016 at 7:59:29 AM UTC-8, Six-Seven Romeo wrote:
> > I searched in RAS and didn't find anything about taxes.
> >
> > I live in a state where they have sales tax on aircraft and when buying a glider for tens of thousands of dollars this can be a major impact. Maybe I need to move to Delaware and incorporate!
> >
> > Sales tax aside, what about capital gain or loss when selling a glider? This certainly applies to personal property (i.e. your home). Does it apply to a $100K glider or is an aircraft more like an automobile? If I sell it for more, then do I have to declare the capital gain? Conversely, it is more likely that I will sell it for less so can I claim a capital loss? Or is this only is the aircraft is related to a business?
> >
> > So many questions. Expiring minds want to know.
> >
> > Thanks, John
>
> Advice on RAS wouldn't be my "go to" for information on this subject. Talk to your tax accountant.

some info from AOPA http://www.aopa.org/Pilot-Resources/Aircraft-Ownership/The-Pilots-Guide-to-Taxes

[glidergeek]

On Tuesday, March 1, 2016 at 7:59:29 AM UTC-8, Six-Seven Romeo wrote:
> I searched in RAS and didn't find anything about taxes.
>
> I live in a state where they have sales tax on aircraft and when buying a glider for tens of thousands of dollars this can be a major impact. Maybe I need to move to Delaware and incorporate!
>
> Sales tax aside, what about capital gain or loss when selling a glider? This certainly applies to personal property (i.e. your home). Does it apply to a $100K glider or is an aircraft more like an automobile? If I sell it for more, then do I have to declare the capital gain? Conversely, it is more likely that I will sell it for less so can I claim a capital loss? Or is this only is the aircraft is related to a business?
>
> So many questions. Expiring minds want to know.
>
> Thanks, John

If you are buying a glider for a business you will depreciate it over a given period of time. When you sell it you have a capitol gain. If you buy for personal use you are not writing it off your income taxes so capitol gains should not apply. None the less consult competent tax advisers.

[SF]

You need to talk to a Tax CPA.
Some things to ask:

Should I establish an LLC corporation in Delaware or another property tax friendly state to hold the asset?

Do I have to pay sales tax if I purchase a glider from an individual? Usually sales taxes only apply to purchases from companies that are licensed to collect them.

Ask about use taxes, sometimes those take the place of sales taxes.

Go on some of the RV sites, those guys have some tricks up their sleeves when it comes to avoiding taxes, might give you more questions to ask your CPA

If you want to get real fancy, incorporate in Ireland, then form a wholly owned Subsidiary in Delaware.

SF

[Six-Seven Romeo]

Here is an IRS tip on the subject.

https://www.irs.gov/uac/Capital-Gains-and-Losses-10-Helpful-Facts-to-Know

"Deductible Losses. You can deduct capital losses on the sale of investment property. You cannot deduct losses on the sale of property that you hold for personal use."