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07-14-2016, 08:11 PM
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Join Date: Apr 2008
Location: Tennessee
Posts: 440
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Business use of Aircraft
I'm at the stage of my life where I've flown off Phase one of my RV-10 and will put on a couple of hundred hours this year that is involved in my new (3 years old) business that requires a lot of travel.
My question is about writing off expenses, depreciation, etc. on my taxes. Anybody have experience with this that point could point me in the right direction? My CPA knows nothing about airplanes and readily admits it. I have talked to several attorney/consultants that have booths at Oshkosh and S-n-F but they all are geared to larger operations and want thousands of $$ before talking to you.
Help! Thanks! 
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07-14-2016, 08:59 PM
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Join Date: Dec 2012
Location: Brooksville, MS
Posts: 745
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__________________
Weasel
RV-4 715hr Sold 
RV-10 "School Bus" -   +1600hr counting
Fisher Classic Cassler Power VW sold
RV-10 N7631T 820hr Sold
RV-8 700+hrs
Carbon Cub 200 hr Sold
One-Off Super Cub 100 hr
SERFI AWARDS
http://weaselrv10.blogspot.com/
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07-15-2016, 12:35 AM
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VAF Moderator / Line Boy
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Join Date: Jan 2005
Location: Dayton, NV
Posts: 12,256
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As an aviation journalist, I use my own aircraft for travel related to business, and the best thing I can say is to keep very good records. Oh, and expect to be audited! We have been successful in getting the IRS to understand our expenses by keeping track of mileage (you get something like $1.31 per statute mile for personal aircraft use if you want to claim mileage - check each year for the rate), dates of travel, and having chart printouts that prove the mileage. It helps to have receipts for fuel or lodging/food to prove that you were where you said you were. We print out copies of our pilot logbooks (legal documents according to the FAA) and aircraft activity logs. Keep it all for the audit!
Paul
__________________
Paul F. Dye
Editor at Large - KITPLANES Magazine
RV-8 - N188PD - "Valkyrie"
RV-6 (By Marriage) - N164MS - "Mikey"
RV-3B - N13PL - "Tsamsiyu"
A&P, EAA Tech Counselor/Flight Advisor
Dayton Valley Airpark (A34)
http://Ironflight.com
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07-15-2016, 07:09 AM
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Join Date: Jun 2005
Location: Locust, NC
Posts: 440
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Over 30 years I used my airplanes for mostly business travel. Every nickel spent was noted in a ledger; hangar, fuel & oil, charts & supplies, insurance, maint., etc. All business hours were tracked, about 200 per year. At the year end everything was totaled, business hours versus personal calculated (85% business average). It could be argued some expenses could be deducted in full but my CPA was conservative, provide the IRS with a little more than enough info and don't try to get away with anything you don't deserve. He would provide a sheet every year showing the expenses, business use hours and %. Depreciation was handled in a similar manner. Paul is correct, airplane on a tax form is a red flag. Your return will be looked at by someone every year. I never got any kick back on mine.
__________________
Dave
M20C
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07-15-2016, 07:32 AM
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Join Date: Jun 2010
Location: McKinney, TX
Posts: 689
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Another option is call the IRS. I have had the need to call them several times over the years and each time was quite suprised to find that the person on the other end was knowledgable, helpful, freindly and more importantly had the answer "from the horses mouth". If you Google IRS Help phone you get 800-829-1040.
__________________
Gil Brice
McKinney, TX EAA-1246
RV7 - Working on fuse, fuel, brakes etc...
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07-15-2016, 05:13 PM
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Join Date: Oct 2006
Location: locust grove, ga
Posts: 139
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rate change for a/c 2016
Paul
This years rate for business use of aircraft is $1.17.
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07-15-2016, 06:02 PM
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VAF Moderator / Line Boy
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Join Date: Jan 2005
Location: Dayton, NV
Posts: 12,256
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Quote:
Originally Posted by carolsyracuse
Paul
This years rate for business use of aircraft is $1.17.
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Dang...deflation!!
Thanks Carol - I hadn't look it up this year.
__________________
Paul F. Dye
Editor at Large - KITPLANES Magazine
RV-8 - N188PD - "Valkyrie"
RV-6 (By Marriage) - N164MS - "Mikey"
RV-3B - N13PL - "Tsamsiyu"
A&P, EAA Tech Counselor/Flight Advisor
Dayton Valley Airpark (A34)
http://Ironflight.com
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07-15-2016, 07:58 PM
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Join Date: Apr 2008
Location: Tennessee
Posts: 440
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Could you quote the document that states the mileage for aviation?
If I understand correctly then the mileage takes the place of trying to record all the various expenses and proportioning them out as to use? Can you also use depreciation IF you use the mileage method?
Thanks, big help!
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07-15-2016, 08:47 PM
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Join Date: May 2006
Location: Pocahontas MS
Posts: 3,884
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I haven't used the deduction in over 20 years, but when I did, there was a rate for cars, a rate for motorcycles, and a rate for privately owned aircraft (I think it also included 'leased' (rented) a/c).
It was the taxpayer's choice whether to use the 'standard mileage rate' or calculated expenses, depreciation, etc.
Basically the same options as a car used for business, but with the higher rate for a/c or lower rate for motorcycles.
Charlie
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07-15-2016, 11:15 PM
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VAF Moderator / Line Boy
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Join Date: Jan 2005
Location: Dayton, NV
Posts: 12,256
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You can get the mileage rate off the GAO web site, but you'll have to search for it.
__________________
Paul F. Dye
Editor at Large - KITPLANES Magazine
RV-8 - N188PD - "Valkyrie"
RV-6 (By Marriage) - N164MS - "Mikey"
RV-3B - N13PL - "Tsamsiyu"
A&P, EAA Tech Counselor/Flight Advisor
Dayton Valley Airpark (A34)
http://Ironflight.com
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