VansAirForceForums  
Home > VansAirForceForums

- POSTING RULES
- Donate yearly (please).
- Advertise in here!

- Today's Posts | Insert Pics


Go Back   VAF Forums > Main > RV General Discussion/News
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 03-12-2015, 07:15 PM
Palamedes's Avatar
Palamedes Palamedes is offline
 
Join Date: Jan 2015
Location: Blairsville, GA
Posts: 202
Question Depreciating an in progress, home built

Does anyone here have any advice or experiences that they would care to share regarding depreciating an aircraft you're building?

I own my own company and I figure if I "sell" my tools and each part to that company as I purchase it, I can depreciate it over time to help offset some of the costs.

But not sure the ramifications or if there are any gotchas. I'm going to talk to my accountant about this next week, but if anyone has any advice at all on the topic I'd love to hear it.

Thanks
__________________
Jason Ellis
RV-10 - Still pluggin away at it.
Blairsville, GA

Youtube Channel and RV-10 Build Log
Reply With Quote
  #2  
Old 03-12-2015, 07:29 PM
DragonflyAero DragonflyAero is offline
 
Join Date: Jan 2013
Location: Greensboro, NC
Posts: 173
Default

Unless it is an offset to attributable income, I think the IRS would have a really hard time with that.
__________________
Bill Vinson
RV-7 Standard Build
http://www.mykitlog.com/users/index....r&project=2226
Reply With Quote
  #3  
Old 03-12-2015, 07:39 PM
SteinAir SteinAir is offline
 
Join Date: Feb 2005
Location: Minneapolis
Posts: 2,473
Default

Best to ask a good tax man...but I can't see any reason to do it (at least on paper). Is this personal property or a business asset? Is this offsetting some other income, taxes or gains? Part of a Corp/LLC or personal? Me thinks it might be tough to explain to the auditor (been there done that), but maybe not....each persons situations are wildly different.

I'm not much help at all I'm afraid, though I do utilize the services of an expensive but good accounting firm to manage my complicated (at least to me) assets & liabilities (taxes, depreciation schedules, etc...).

Cheers,
Stein
Reply With Quote
  #4  
Old 03-12-2015, 11:49 PM
rv7boy's Avatar
rv7boy rv7boy is offline
Forum Peruser
 
Join Date: Jan 2005
Location: Austinville, Alabama
Posts: 2,458
Default

Not to mention what the FAA would say come Airworthiness Certificate time when you have to state you built the airplane for "recreation and education." But this has been discussed ad nauseum in previous threads. Just use the Search function on this topic. You're not the first person who has thought of depreciating or deducting home building assets or expenses.
__________________
Don Hull
RV-7 Wings
KDCU Pryor Field
Pilots'n Paws Pilot
N79599/ADS-B In and Out...and I like it!

?Certainly, travel is more than the seeing of sights;
it is a change that goes on, deep and permanent, in the ideas of living." Miriam Beard

Last edited by rv7boy : 03-12-2015 at 11:57 PM.
Reply With Quote
  #5  
Old 03-13-2015, 04:44 AM
curtis's Avatar
curtis curtis is offline
 
Join Date: Jan 2005
Location: Kansas
Posts: 384
Default

The other thing to keep in mind is all of the aluminum parts you are riveting together are not yet legally considered an airplane until you get the first C of A. From a Personal Property tax standpoint this is good cause otherwise the tax man would be wanting his share during the build process.
__________________
RV-6A Slider
550 hours +

Build it light and cheap
Reply With Quote
  #6  
Old 03-13-2015, 08:07 AM
RVbySDI's Avatar
RVbySDI RVbySDI is offline
 
Join Date: May 2005
Location: Tuttle, Oklahoma
Posts: 2,563
Default

My thought is, how do you depreciate an asset that is legally not allowed to be used for commercial purposes?

Of course I am not an attorney or tax accountant. I did not even sleep in a Holiday Inn last night so, I could be all wet on this thought.
__________________
RVBYSDI
Steve
RV9A
https://rvwings.com

Live Long And Prosper! 🖖🏻
Reply With Quote
  #7  
Old 03-13-2015, 02:43 PM
Palamedes's Avatar
Palamedes Palamedes is offline
 
Join Date: Jan 2015
Location: Blairsville, GA
Posts: 202
Default

RVbySDI makes the best point yet.. I need to talk to accountant.. but it may not be possible..

I was hoping it would .. but oh well.. sounds lik enot.
__________________
Jason Ellis
RV-10 - Still pluggin away at it.
Blairsville, GA

Youtube Channel and RV-10 Build Log
Reply With Quote
  #8  
Old 03-13-2015, 04:12 PM
Kahuna's Avatar
Kahuna Kahuna is offline
 
Join Date: Dec 2004
Location: Gold Hill, NC25
Posts: 2,400
Default

Quote:
Originally Posted by Palamedes View Post
RVbySDI makes the best point yet.. I need to talk to accountant.. but it may not be possible..

I was hoping it would .. but oh well.. sounds lik enot.
Except he is completely wrong. I guess even after years of ad nauseum discussions, this is still completely misunderstood and still misstated.

First, why the plane was built has nothing to do with its use.
Second, There is nothing that prevents EAB's from being used for commercial purposes. Please lets get this straight.
Third, there are huge differences between the IRS business use, and the FAA commercial use. They have nothing to do with each other.
Forth, well thats enough for now.
__________________
Kahuna
6A, S8 ,
Gold Hill, NC25

Last edited by Kahuna : 03-13-2015 at 04:14 PM.
Reply With Quote
  #9  
Old 03-13-2015, 04:22 PM
rv7boy's Avatar
rv7boy rv7boy is offline
Forum Peruser
 
Join Date: Jan 2005
Location: Austinville, Alabama
Posts: 2,458
Default

If there is an RV owner among us who is depreciating the value of their tools and their airplane, as the original poster stated, would you please speak up? We'd like to know, so we can do it too. 😳
__________________
Don Hull
RV-7 Wings
KDCU Pryor Field
Pilots'n Paws Pilot
N79599/ADS-B In and Out...and I like it!

?Certainly, travel is more than the seeing of sights;
it is a change that goes on, deep and permanent, in the ideas of living." Miriam Beard
Reply With Quote
  #10  
Old 03-13-2015, 04:50 PM
roadrunner20's Avatar
roadrunner20 roadrunner20 is offline
 
Join Date: Feb 2005
Location: Bay Pines, FL (based @ KCLW)
Posts: 1,955
Default

I've owned several small companies, but I can't see where there would be a big tax savings on the depreciation of builder tools.

IMHO, There's not enough money in the tools to be worth the effort and it raises the potential for a visit/audit from the tax man.
__________________
Danny "RoadRunner" Landry
Morphed RV7(formally 7A), N20DL, PnP Pilot
1190+ hours
2019 Donation Paid
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -6. The time now is 02:02 AM.


The VAFForums come to you courtesy Delta Romeo, LLC. By viewing and participating in them you agree to build your plane using standardized methods and practices and to fly it safely and in accordance with the laws governing the country you are located in.