Homebuilt tax writeoff

I am self employed and from all these comments, the least I see is
that I can use it for business transportation - just like travel
expense deduction on a car. If I claim no more deduction than
equivalent airlines expenses I don't see how IRS would object. I use
about 5gal/hr at 125kts IAS in my SQ2000 canard which can cruise even
faster at higher altitudes. Considering straight line advantage over
autos and waiting period at airports the fuel expenses are as good
compared to car and cheaper than airlines - and I already got the
bird.
-----------------------------------------
SQ2000 canard: http://www.abri.com/sq2000

Ron Wanttaja wrote:
On Fri, 24 Dec 2004 08:05:11 -0800, "C J Campbell"
wrote:
.......
Have to admit I've wondered whether I could write off the cost of a
kit if I
wrote a series of articles about its construction. The amount one
would make on
the articles is probably quite a bit less than the kit and engine
would cost,
but one could avoid IRS trouble with careful planning.

The IRS wants to see a profit in three out of five years. Buy the
kit in year
one and take a loss. Claim a profit from the articles written in
years two and
three. Buy the engine in year four and take a loss. Claim a profit
in year
five from the completion articles, and more profit in year six from
articles
related to test-flying.

That is, if you can get any flying in while playing a seven-year game
of
rock-hockey at Leavenworth for tax evasion. :-)

Ron Wanttaja

wrote:

I am self employed and from all these comments, the least I see is
that I can use it for business transportation - just like travel
expense deduction on a car. If I claim no more deduction than
equivalent airlines expenses I don't see how IRS would object. I use
about 5gal/hr at 125kts IAS in my SQ2000 canard which can cruise even
faster at higher altitudes. Considering straight line advantage over
autos and waiting period at airports the fuel expenses are as good
compared to car and cheaper than airlines - and I already got the
bird.

Last I knew, you had to use actual expenses, not an "equivalent"
expense. The only exception is road vehicles which have the mileage
based deduction to simplify things. I don't recall ever reading a
similar arrangement for aircraft so I believe you would have to track
actual expenses pro rated to your business use vs. personal use.
Definitely a question to pose to a good tax accountant or lawyer before
filing your return.


Matt