VansAirForceForums  
Home > VansAirForceForums

-POSTING RULES
-Advertise in here!
- Today's Posts | Insert Pics

Keep VAF Going
w/a Donation






VAF on Twitter:
@VansAirForceNet


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 03-23-2023, 09:50 PM
Auburntsts's Avatar
Auburntsts Auburntsts is online now
 
Join Date: Jan 2005
Location: Tampa, FL
Posts: 3,345
Default RV cost basis for Capital gains

Got kinda an off the wall question for those that have sold an RV. If you built your plane how did you determine your cost basis in order to figure out any potential capital gains as a result of the sale? To be clear Iím not asking whether one should or shouldnít pay capital gains tax on the profit from the sale. Rather Iím interested in simply how one determines the cost basis of what was originally just pieces parts and sub components that eventually became a single end item.
__________________
Todd "I drink and know things" Stovall
PP ASEL-IA
RV-10 N728TT - Flying!
EAA Lifetime Member
WAR EAGLE!
Reply With Quote
  #2  
Old 03-24-2023, 05:01 AM
Richard Connell Richard Connell is offline
 
Join Date: Aug 2006
Location: Sydney Australia
Posts: 564
Default

Kit cost plus your labor.
2000h at $100 per hour sounds fair.
__________________
Richard
RV7 VH-XRC Sold :-(
RV10 VH-XRK
Sydney, AUS
Reply With Quote
  #3  
Old 03-24-2023, 05:31 AM
FORANE's Avatar
FORANE FORANE is offline
 
Join Date: Nov 2011
Location: East TN
Posts: 678
Default

The above reply might be compliant with Australian tax law. It wouldn't be in the us.
__________________
Lancair 235/340
RV-9A (2013 - 2016)
Reply With Quote
  #4  
Old 03-24-2023, 05:34 AM
Richard Connell Richard Connell is offline
 
Join Date: Aug 2006
Location: Sydney Australia
Posts: 564
Default

Sorry. It was tongue in cheek.
Internet not the best place to ask for tax advice imho.
__________________
Richard
RV7 VH-XRC Sold :-(
RV10 VH-XRK
Sydney, AUS
Reply With Quote
  #5  
Old 03-24-2023, 07:36 AM
Snowflake's Avatar
Snowflake Snowflake is offline
 
Join Date: Oct 2009
Location: Sidney, BC, Canada
Posts: 4,491
Default

I'd hazard a guess that even 2000 hours at minimum wage, on top of the cost of every component in the airplane, would be more than the aircraft is worth on the open market. How do you have capital gains on a depreciating asset?
__________________
Rob Prior
1996 RV-6 "Tweety" C-FRBP (formerly N196RV)
Reply With Quote
  #6  
Old 03-24-2023, 08:19 AM
Mistfarer Mistfarer is offline
 
Join Date: Oct 2021
Location: West Midlands, United Kingdom
Posts: 34
Default

Quote:
Originally Posted by Snowflake View Post
I'd hazard a guess that even 2000 hours at minimum wage, on top of the cost of every component in the airplane, would be more than the aircraft is worth on the open market. How do you have capital gains on a depreciating asset?
Well... how about declaring the sale of the plane as a capital loss, hence getting a tax rebate next time you make some actual capital gains...?

Maybe I should try that when I sell my crusty old car...
__________________
Patrick
United Kingdom
Van's RV-8 "Mist" #84063
Reply With Quote
  #7  
Old 03-24-2023, 08:43 AM
BruceW BruceW is offline
 
Join Date: Aug 2005
Location: Elk Grove, CA
Posts: 350
Default

Watching this thread.
Kind of creepy that I was just thinking of this subject yesterday.
Im in CA so it matters even more.
__________________
Bruce W
RV-1 Mockingbird rebuild, 1997
RV-7 QB, 2010 (500+ hours)
RV-14 working the tail
Elk Grove, CA
Reply With Quote
  #8  
Old 03-24-2023, 09:14 AM
hgerhardt's Avatar
hgerhardt hgerhardt is offline
 
Join Date: Oct 2006
Location: torrance, ca
Posts: 965
Default

You should be able to add the cost of ongoing maintenance and upgrades to the basis, just like you can with real estate.
Reply With Quote
  #9  
Old 03-24-2023, 09:23 AM
MacCool's Avatar
MacCool MacCool is offline
 
Join Date: Aug 2020
Location: central Minnesota
Posts: 1,669
Default

Quote:
Originally Posted by Richard Connell View Post
Sorry. It was tongue in cheek.
Internet not the best place to ask for tax advice imho.
Absolutely. This subject has "audit" written all over it. Consultation with an actual tax professional now will likely avoid having to try to justify it to an IRS agent later.
__________________
RV-9A, 2011, bought flying
Not a builder
Reply With Quote
  #10  
Old 03-24-2023, 09:28 AM
FlyingDiver FlyingDiver is offline
 
Join Date: Feb 2019
Location: Southwest Florida
Posts: 253
Default

Quote:
Originally Posted by hgerhardt View Post
You should be able to add the cost of ongoing maintenance and upgrades to the basis, just like you can with real estate.
Only capital improvements. You cannot add maintenance to your cost basis.
__________________
Joe
2023 Donation Paid
RV-12iS In Progress
Empennage, Wings (except nav lights), Fuselage done
Working on Finish kit and Avionics
Engine due in June (I think)
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 08:35 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.