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Deducting Aircraft Expenses - Standard Mileage Deduction?



 
 
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  #1  
Old June 30th 05, 04:51 PM
Jerry
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Default Deducting Aircraft Expenses - Standard Mileage Deduction?

Hello,

I have an apartment complex in a town about 150 miles away. It
is an ideal mission for my Beech Sundowner. I'm about to take a car
out there to keep at the airport. Then I will begin flying ( 1.5 hours
) instead of driving ( 2.75 hours ).

Since I have no vehicle dedicated to my business, I use the standard
mileage deduction when I drive - 37.5 cents per mile, if
I remember correctly.

The cost of flying is, of course, much higher than 37.5 cents per
mile. The IRS itself acknowledges this, in their guidelines for
reimbursing their own employees - if an IRS employee takes a GA
airplane on IRS business, IRS reimburses the employee 99.5 cents per
mile.

At this time, I do not track my aircraft expenses in detail: it's
sort of an "I'd rather not know" situation . And I'd rather not have
the recordkeeping & paperwork burden to do so, but if I have to....

Is anybody out there deducting their business flying with a "pennies
per mile" type formula? Or do you all hire accountants to track your
aircraft expenses?

- Jerry Kaidor ( )

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  #2  
Old July 1st 05, 01:06 AM
Ron Rosenfeld
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On 30 Jun 2005 08:51:34 -0700, "Jerry" wrote:



Is anybody out there deducting their business flying with a "pennies
per mile" type formula? Or do you all hire accountants to track your
aircraft expenses?

- Jerry Kaidor ( )



When I was doing it, I tracked my actual costs (pretty easy with
computerized financial programs) and hours. I then deducted the
appropriate business vs personal use percentage; and, at least when the a/c
was newer, was able to also deduct depreciation (business portion).


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)
  #3  
Old July 1st 05, 02:46 PM
M.E. Borner
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I use a pennies per hour rate. There is a Governement website
(http://www.gsa.gov/Portal/gsa/ep/con...asic.jsp&P=MTT)
that has a per mile rate ($1.07) for reimbursement for privately owned
aircraft. I convert that into $/hr. based on the performance of my
aircraft.

I feel that this is a pretty solid figure since it is published by the
governement and appears on the same page as the accepted $ .305 per
mile for cars. Though it does not really tract actual expenses
incurred. For example, if you had a single and a twin both with the
same cruise performance they would come out to the same reimbursement
number but we all know the running expenses of the twin would actually
be higher.

  #4  
Old July 1st 05, 07:45 PM
Ron Rosenfeld
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On 1 Jul 2005 06:46:09 -0700, "M.E. Borner" wrote:



I use a pennies per hour rate. There is a Governement website
(http://www.gsa.gov/Portal/gsa/ep/con...asic.jsp&P=MTT)
that has a per mile rate ($1.07) for reimbursement for privately owned
aircraft. I convert that into $/hr. based on the performance of my
aircraft.

I feel that this is a pretty solid figure since it is published by the
governement and appears on the same page as the accepted $ .305 per
mile for cars. Though it does not really tract actual expenses
incurred. For example, if you had a single and a twin both with the
same cruise performance they would come out to the same reimbursement
number but we all know the running expenses of the twin would actually
be higher.


Well, don't forget that the page you reference has nothing to do with the
IRS. It is merely what the GSA chooses to give its employees. There's no
guarantee that the IRS will accept those numbers, although they might.

OTOH, there is a history of the IRS accepting actual expenses (including
depreciation).

When I was using my Mooney for business purposes, I would always come out
ahead using actual costs rather than whatever the GSA was allowing its
employees in any particular year.

Looking at last years numbers, I would still come out ahead using actual
numbers vs the GSA employee reimbursement rate.

It's likely the Sundowner is less expensive to maintain than my Mooney, but
if the OP has recently purchased it, he may have a significant depreciation
deduction that he is giving up. In addition, if he has a major a/c related
expense, he might be able to benefit significantly from the actual cost
method. An engine or new avionics can be depreciated; a paint job can (or
at least could in the past) be written off entirely in the year it was
done.

There also may (or may not) be issues with whether or not he is above or
below 50% business use threshold; and I seem to recall that once you choose
to use the standard mileage rate (for autos), that you have to stick with
it.

Probably his best bet would be to not fear the record keeping requirements,
and also to check with folk knowledgeable about writing off a/c usage.


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)
 




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