AOPA Cardinal tax value?

Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA
mag claims about 350K has been invested by various suppliers in the plane.
If the tax man thinks it is worth 350K, wouldn't someone need to shell out
nearly 100K in taxes to claim it?

--
Best Regards,
Mike

http://photoshow.comcast.net/mikenoel

Mike Noel wrote:
Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA
mag claims about 350K has been invested by various suppliers in the plane.
If the tax man thinks it is worth 350K, wouldn't someone need to shell out
nearly 100K in taxes to claim it?

When you win something you're taxed at the fair market value.

For something new, that's usually the retail price.

For something like the AOPA Cardinal, it is the going price for a
restored Cardinal.

If I won it, the first thing I'd do is go get 3 professional appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.

A quick look at controller.com shows Cardinals with new paint and
interior going for around $80k, so I doubt the market value of
the AOPA Cardinal is anywhere near $350k.

You can never recover the full cost of "improvements" on an airplane
when it is sold.


--
Jim Pennino

Remove .spam.sux to reply.

On Nov 22, 11:25 am, wrote:
Mike Noel wrote:
Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA
mag claims about 350K has been invested by various suppliers in the plane.
If the tax man thinks it is worth 350K, wouldn't someone need to shell out
nearly 100K in taxes to claim it?

When you win something you're taxed at the fair market value.

For something new, that's usually the retail price.

For something like the AOPA Cardinal, it is the going price for a
restored Cardinal.

If I won it, the first thing I'd do is go get 3 professional appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.

AOPA is also required to supply the value to the IRS. They always low
ball it. If you want to challenge it you'll need to do that formally
with the IRS. Whenever large prizes like this are awarded the IRS is
involved.

-Robert

Robert M. Gary wrote:
On Nov 22, 11:25 am, wrote:
Mike Noel wrote:
Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA
mag claims about 350K has been invested by various suppliers in the plane.
If the tax man thinks it is worth 350K, wouldn't someone need to shell out
nearly 100K in taxes to claim it?

When you win something you're taxed at the fair market value.

For something new, that's usually the retail price.

For something like the AOPA Cardinal, it is the going price for a
restored Cardinal.

If I won it, the first thing I'd do is go get 3 professional appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.

AOPA is also required to supply the value to the IRS. They always low
ball it. If you want to challenge it you'll need to do that formally
with the IRS. Whenever large prizes like this are awarded the IRS is
involved.

What do you think the professional appraisal would be for?

If the AOPA value was less than the appraisal, what do you imagine
I would do with the appraisal?

The IRS wants tax on winnings, no ****?

--
Jim Pennino

Remove .spam.sux to reply.

I saw a presentation by Julie K. Boatman of the AOPA at the Garmin store in
Chicago, and she addressed this issue.

IIRC, she said there is one value, which is the sum of the parts of the
airplane.

Then there is another, which is what the airplane might sell for.

Finally, there is a valuation that the IRS will accept for tax purposes. And
it is quite a bit lower than the other two valuations...


wrote in message
...
Robert M. Gary wrote:
On Nov 22, 11:25 am, wrote:
Mike Noel wrote:
Any idea what the tax value will be on the AOPA Cardinal? The latest
AOPA
mag claims about 350K has been invested by various suppliers in the
plane.
If the tax man thinks it is worth 350K, wouldn't someone need to
shell out
nearly 100K in taxes to claim it?

When you win something you're taxed at the fair market value.

For something new, that's usually the retail price.

For something like the AOPA Cardinal, it is the going price for a
restored Cardinal.

If I won it, the first thing I'd do is go get 3 professional
appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.

AOPA is also required to supply the value to the IRS. They always low
ball it. If you want to challenge it you'll need to do that formally
with the IRS. Whenever large prizes like this are awarded the IRS is
involved.

What do you think the professional appraisal would be for?

If the AOPA value was less than the appraisal, what do you imagine
I would do with the appraisal?

The IRS wants tax on winnings, no ****?

--
Jim Pennino

Remove .spam.sux to reply.

news.chi.sbcglobal.net wrote:
I saw a presentation by Julie K. Boatman of the AOPA at the Garmin store
in Chicago, and she addressed this issue.

IIRC, she said there is one value, which is the sum of the parts of the
airplane.

Then there is another, which is what the airplane might sell for.

Finally, there is a valuation that the IRS will accept for tax purposes.
And it is quite a bit lower than the other two valuations...

I'd be curious to know more about that last statement as it doesn't
sound correct to me. I haven't refreshed my memory yet on the tax laws
as tax season is still a couple of months away, but I haven't heard of
any regulation that allows you to use less than "fair market value" for
tax valuation purposes. And that sounds like the second value above,
not the third.

Any tax gurus here know if what she is quoted as saying is legit?

Matt

On Nov 22, 1:05 pm, wrote:

If I won it, the first thing I'd do is go get 3 professional appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.
AOPA is also required to supply the value to the IRS. They always low
ball it. If you want to challenge it you'll need to do that formally
with the IRS. Whenever large prizes like this are awarded the IRS is
involved.

What do you think the professional appraisal would be for?

If the AOPA value was less than the appraisal, what do you imagine
I would do with the appraisal?

Sucks when the coffee pot runs dry.

-Robert

"Mike Noel" wrote in message
. ..
Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA mag
claims about 350K has been invested by various suppliers in the plane. If the
tax man thinks it is worth 350K, wouldn't someone need to shell out nearly
100K in taxes to claim it?

That is why many of those planes are immediately sold by the winners. That
said, the investment in the plane probably does not determine its tax value any
more than your investment in your own plane determines its market value. For
example: If I took a bummed-out C-150 and lavished $150,000 on it, what could I
sell it for? (Hint: somewhere near the top of the market for a C-150, but
something far less than $150,000)

My guess is that the tax value would more likely be based on a likely selling
price. Vref would probably be a good starting point.

Vaughn

"Mike Noel" wrote in message
. ..
Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA
mag claims about 350K has been invested by various suppliers in the plane.
If the tax man thinks it is worth 350K, wouldn't someone need to shell out
nearly 100K in taxes to claim it?

--
Best Regards,
Mike

http://photoshow.comcast.net/mikenoel

While the aircraft is certainly spruced up, the "investment" on the part of
most of the suppliers is essentially in an advertising expense which gets
their shop's or product's name in the magazine repeatedly.

Win the airplane and you'll get taxed on a basis which is equivalent to or
slightly above the price of the nicest Cardinal(s) currently trading hands.

My guess is that the world's nicest Cardinal is worth $100k - $125k, which
probably means taxes of between $30k and $40k. Not a bad price to pay for a
very nice airplane.

KB

On Thu, 22 Nov 2007 14:55:04 -0500, "Kyle Boatright"
wrote:


My guess is that the world's nicest Cardinal is worth $100k - $125k, which
probably means taxes of between $30k and $40k. Not a bad price to pay for a
very nice airplane.

You got that right!