Aircraft in Corporation or LLC?

I was told if I may be able to use my airplane for my commercial flight
training or use it strictly as a time builder to help obtain further ratings
it may be able to be used as a valid educational expense for new career
training write off or something like that. My tax attorney is looking in to
this a little further for me will find out more after the holidays.


"Dude" wrote in message
...
Get a different accountant.

Unless you find the many possible ways to make your plane into a non-hobby
not practical, its a simple thing to do. The IRS cannot label your
aircraft
as a hobby or luxury as easily as they can other things do to the fine
work
of Bob Dole and other congress members. Your plane is presumed to be a
perfectly legitimate business asset unless you make it otherwise. This is
much differrent from raising animals, parachuting, and other expensive
hobbies.

How much flying do you do? What for? What's your profession? Would you
be
willing to rent your airplane to a few friends or even strangers?

If your CPA didn't go over this with you, he was not qualified to answer
your question.




"Harry Shin" wrote in message
...
Uh, never mind...I just got off the phone with my friend who is a CPA.
This
won't work since the corporation is not formed as a business.
Apparently
there are rules, called "Hobby Laws" which discourage people trying to
write
off personal, recreational activities as corporation costs...

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or
Limited
Liability Company? If so, can you write off maintenance/hangar costs
(vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

"NW_PILOT" wrote in message
...
I was told if I may be able to use my airplane for my commercial flight
training or use it strictly as a time builder to help obtain further
ratings
it may be able to be used as a valid educational expense for new career
training write off or something like that. My tax attorney is looking in
to
this a little further for me will find out more after the holidays.


If your "tax attorney" has to look into this you need a new tax attorney.
Education or training for a new career is never deductible. Education to
advance yourself in your current career is deductible so, if you are
currently employed as a commercial pilot, training for your ATP would be
deductible.

Mike
MU-2


"Dude" wrote in message
...
Get a different accountant.

Unless you find the many possible ways to make your plane into a
non-hobby
not practical, its a simple thing to do. The IRS cannot label your
aircraft
as a hobby or luxury as easily as they can other things do to the fine
work
of Bob Dole and other congress members. Your plane is presumed to be a
perfectly legitimate business asset unless you make it otherwise. This is
much differrent from raising animals, parachuting, and other expensive
hobbies.

How much flying do you do? What for? What's your profession? Would you
be
willing to rent your airplane to a few friends or even strangers?

If your CPA didn't go over this with you, he was not qualified to answer
your question.




"Harry Shin" wrote in message
...
Uh, never mind...I just got off the phone with my friend who is a CPA.
This
won't work since the corporation is not formed as a business.
Apparently
there are rules, called "Hobby Laws" which discourage people trying to
write
off personal, recreational activities as corporation costs...

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or
Limited
Liability Company? If so, can you write off maintenance/hangar costs
(vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

"Mike Rapoport" wrote in message
ink.net...

"NW_PILOT" wrote in message
...
I was told if I may be able to use my airplane for my commercial flight
training or use it strictly as a time builder to help obtain further
ratings
it may be able to be used as a valid educational expense for new career
training write off or something like that. My tax attorney is looking in

If your "tax attorney" has to look into this you need a new tax attorney.
Education or training for a new career is never deductible. Education to

I wouldn't shoot quite so fast. Depending on your employment status and
income level there are more government programs out there than even good
CPAs are often aware of. Back in 2000 the gub'mint helped me pay for night
school classes in programming at my local community college, thanks to the
"Hope Credit" or something like that. Added two simple pages (none of which
asked at all about job-relatedness) to my tax return and got me about $1000,
IIRC. I wouldn't be surprised if there are similar ways to write off flight
training, under at least some circumstances.

-cwk.

C Kingsbury wrote:


I wouldn't shoot quite so fast. Depending on your employment status and
income level there are more government programs out there than even good
CPAs are often aware of. Back in 2000 the gub'mint helped me pay for night
school classes in programming at my local community college, thanks to the
"Hope Credit" or something like that. Added two simple pages (none of which
asked at all about job-relatedness) to my tax return and got me about $1000,
IIRC. I wouldn't be surprised if there are similar ways to write off flight
training, under at least some circumstances.

Absolutely, as a controller I have written off my flight training as
continuing training for ATC.

Newps wrote:



C Kingsbury wrote:


I wouldn't shoot quite so fast. Depending on your employment status and
income level there are more government programs out there than even good
CPAs are often aware of. Back in 2000 the gub'mint helped me pay for
night
school classes in programming at my local community college, thanks to
the
"Hope Credit" or something like that. Added two simple pages (none of
which
asked at all about job-relatedness) to my tax return and got me about
$1000,
IIRC. I wouldn't be surprised if there are similar ways to write off
flight
training, under at least some circumstances.


Absolutely, as a controller I have written off my flight training as
continuing training for ATC.

I thought the education or training had to be "required" in order to
keep your job or advance in your field. Is flight training really
required by the FAA for controllers?

Matt

Matt Whiting wrote:


Absolutely, as a controller I have written off my flight training as
continuing training for ATC.


I thought the education or training had to be "required" in order to
keep your job or advance in your field.

If the training is required to keep your job it is not deductible, that
statement itself is in the IRS regs. If the training is to improve
yourself and your ability to do your job then it is deductible.


Is flight training really
required by the FAA for controllers?

Not required at all.

Matt Whiting wrote:

Newps wrote:



C Kingsbury wrote:


I wouldn't shoot quite so fast. Depending on your employment status and
income level there are more government programs out there than even good
CPAs are often aware of. Back in 2000 the gub'mint helped me pay for
night
school classes in programming at my local community college, thanks
to the
"Hope Credit" or something like that. Added two simple pages (none of
which
asked at all about job-relatedness) to my tax return and got me about
$1000,
IIRC. I wouldn't be surprised if there are similar ways to write off
flight
training, under at least some circumstances.



Absolutely, as a controller I have written off my flight training as
continuing training for ATC.


I thought the education or training had to be "required" in order to
keep your job or advance in your field. Is flight training really
required by the FAA for controllers?

From reading this (page 61), I'd hate to have an IRS audit and try to
explain how flight training is directly related to increasing your
skills as a controller, since I don't believe flight training is any
part of the ATC curriculum.


Matt

Matt Whiting wrote:



From reading this (page 61), I'd hate to have an IRS audit and try to
explain how flight training is directly related to increasing your
skills as a controller, since I don't believe flight training is any
part of the ATC curriculum.

Flight training is a slam dunk simple example at increasing my skills as
a controller. We had an entire training program that let controllers
ride in the jumpseats of airliners, air taxis, etc.

You need to prove the training is required for you to keep your current
job. Training for another job is not deductable.

"Robert M. Gary" wrote in message
oups.com...
You need to prove the training is required for you to keep your current
job. Training for another job is not deductable.

That used to be true; there are now some circumstances allowing you to
deduct educational costs.

See a tax advisor and forget Usenet.