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#1
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I have a PPL, no commercial. I travel for my consulting busines, which I
own. Can I bill my client some reasonable rate for travel expenses when I use my plane? I am not using the plane to generate income, it is tangential to my business, which happens to be technology litigation consulting. The followup question is, if I can't bill the expense, would I be able to if I got the simplest level of a commercial license? |
#2
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Yes.
Mike MU-2 "Michael 182" wrote in message news:rRwWa.42484$o%2.21901@sccrnsc02... I have a PPL, no commercial. I travel for my consulting busines, which I own. Can I bill my client some reasonable rate for travel expenses when I use my plane? I am not using the plane to generate income, it is tangential to my business, which happens to be technology litigation consulting. The followup question is, if I can't bill the expense, would I be able to if I got the simplest level of a commercial license? |
#3
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Your local FSDO is probably the best place to ask this question, but
applying the same logic that the FAA has recently applied to CAP pilots (who are in a marginally similar situation, their "client" being the federal government), I think they'd say that as a private pilot, you can be reimbursed for your flying expenses, OR log the flight time, but not both. In the FAA's twisted mind, free flight time amounts to compensation, which is verboten for a private pilot. CAP pilots are reimbursed after-the-fact for mission flying expenses, just as you're seeking, and that's how the FAA ruled, at least where private pilots are concerned. If nothing else, you should be able to deduct it from your taxes as a business expense. "Michael 182" wrote in message news:rRwWa.42484$o%2.21901@sccrnsc02... I have a PPL, no commercial. I travel for my consulting busines, which I own. Can I bill my client some reasonable rate for travel expenses when I use my plane? I am not using the plane to generate income, it is tangential to my business, which happens to be technology litigation consulting. The followup question is, if I can't bill the expense, would I be able to if I got the simplest level of a commercial license? |
#4
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Hi,
"Aloft" wrote: Your local FSDO is probably the best place to ask this question, but applying the same logic that the FAA has recently applied to CAP pilots (who are in a marginally similar situation, their "client" being the federal government), I think they'd say that as a private pilot, you can be reimbursed for your flying expenses, OR log the flight time, but not both. In the FAA's twisted mind, free flight time amounts to compensation, which is verboten for a private pilot. CAP pilots are reimbursed after-the-fact for mission flying expenses, just as you're seeking, and that's how the FAA ruled, at least where private pilots are concerned. Uh... are you sure about all this? It makes no sense that log time and the expense of flying are in any way associated. Beyond that, the FARs have some information about being compensated, and make no mention of logging flight time. The FARs state that a PP *can* be compensated for flight expenses as long as the flight activity is unrelated to the work activity, e.g. the flight is simply a means of transportation to the work. CAP is not similar, in that the flight activity is directly related to the reason for compensation; you wouldn't be flying if it weren't for the request to do so, as opposed to being peripheral to the activity. This is more similar to being a pilot for an aerial photographer. In this situation, compensation to PPs is in violation of the FARs. If nothing else, you should be able to deduct it from your taxes as a business expense. This can be done. In the US, the IRS has instructions for such deductions. Neil |
#5
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On Sat, 2 Aug 2003 09:15:46 -0400, "Jack Wynn Jr"
wrote: You absolutely cannot MAKE any money from it unless your a commercial rated pilot. In other words, if the total cost of flight A was $129.38 and your client wrote you a check for $129.38 then your legal. But if he mistakenly wrote it for $129.39 then your illegal. Unless you have a commercial cert. That is absolutely NOT the case in the situation cited. There are specific regulations allowing what the OP proposed. For example: ====================== 61.113 (b) A private pilot may, for compensation or hire, act as pilot in command of an aircraft in connection with any business or employment if: (1) The flight is only incidental to that business or employment; and (2) The aircraft does not carry passengers or property for compensation or hire. ===================== Flying yourself to a business meeting, or sales calls, where the business is essentially unrelated to aviation, is specifically allowed as a situation in which you can be compensated as a pilot. Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA) |
#6
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"Michael 182" wrote in message
news:rRwWa.42484$o%2.21901@sccrnsc02... I have a PPL, no commercial. I travel for my consulting busines, which I own. Can I bill my client some reasonable rate for travel expenses when I use my plane? I am not using the plane to generate income, it is tangential to my business, which happens to be technology litigation consulting. I believe the answer is yes, since travel is incidental. Just like a car. But to avoid any possibility of some over-zealous FAA wallah making your life a misery over the 'compensation' issue, try this. Bump up your hourly rate to cover incidental travel expenses, don't bother to bill your client at all for travel, and then take the standard IRS airplane mileage as a business deduction. Can't find the link right now, but I believe it is presently $0.96/mile. It doesn't hurt to fill the plane with computers/books & take a few pictures to prove later (if necessary) that private airplane transport made sound economic sense for this particular client. -- Dr. Tony Cox Citrus Controls Inc. e-mail: http://CitrusControls.com/ |
#7
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Michael 182 wrote:
I have a PPL, no commercial. I travel for my consulting busines, which I own. Can I bill my client some reasonable rate for travel expenses when I use my plane? I am not using the plane to generate income, it is tangential to my business, which happens to be technology litigation consulting. Michael, Your best bet is probably to run this question by AOPA and your accountant. In contrast to some other responses on this thread, I don't think the FAA cares (I'm assuming it's just you flying, and not you putting your clients in the plane and flying them to another locale). I think it's between you, the client and (if tax issues are involved) possibly the IRS. I think if you bill the client a rate commensurate with gov't milage for driving, or with a commercial airline ticket purchased on the same time scale, no one will look twice, neither your client nor the IRS nor the FAA. I think if your actual flight expenses are significantly higher than driving or commercial flight, the client might object if you bill them for the whole thing, but that's between you and the client. The FAA cares deeply that private pilots not "hold forth" to the public to provide transportation. Thus the rules that the pilot can only be reimbursed for certain specified actual expenses such as fuel and oil, or rental fees, and even then only a pro-rated share with the pilot paying his part, and that even receiving logged time can be construed as "compensation". And the flight must meet other tests, such as you having reasons of your own to travel to your destination, not going there simply to transport others. But if it's just you in the plane, I don't think the FAA cares how you're funding your "flight addiction": working 9-to-5, billing the client for reasonable transportation expenses, inherited wealth, whatever. The followup question is, if I can't bill the expense, would I be able to if I got the simplest level of a commercial license? The commercial license would change the issues if you are flying others, but I don't think it's relevant if the question is you traveling on business. Good luck, Sydney |
#8
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On Sat, 02 Aug 2003 16:27:28 GMT, Sydney Hoeltzli wrote:
The commercial license would change the issues if you are flying others, but I don't think it's relevant if the question is you traveling on business. hm. And if he goes for the commercial to have all the possible problems out of the way (or because FAA demands a CPL for this situation), can he then deduct the expenses for the training? #m -- http://www.usawatch.org/ http://www.alternet.org/ Don't like your neighbor? - https://tips.fbi.gov/ Bombing for peace is like ****ing for virginity. |
#9
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![]() Martin Hotze wrote: hm. And if he goes for the commercial to have all the possible problems out of the way (or because FAA demands a CPL for this situation), can he then deduct the expenses for the training? No. The education is not required for the job. George Patterson The optimist feels that we live in the best of all possible worlds. The pessimist is afraid that he's correct. James Branch Cavel |
#10
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![]() The followup question is, if I can't bill the expense, would I be able to if I got the simplest level of a commercial license? The commercial license would change the issues if you are flying others,.. Not if its just the "simplest" commercial as he asked. Carrying others ing:s country would also require an instrument rating. Edward |
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