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Old September 5th 06, 01:46 AM posted to rec.aviation.homebuilt
Ron Natalie
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Posts: 1,175
Default Tax consequences of selling a homebuilt.

J.Kahn wrote:

I don't think capital gains applies there. The materials weren't
purchased as an "investment".


Makes no difference in the US.

I believe that the IRS or (Revenue Canada
up here) would have to see a pattern of construction and sales of
aircraft that would indicate that the activity is professional in nature
before they would consider the profits from the sale as income.


Absolutely false.