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  #1  
Old 06-12-2021, 04:00 PM
WingnutWick's Avatar
WingnutWick WingnutWick is offline
 
Join Date: Jun 2013
Location: Lemoore
Posts: 259
Default Seller Financing/tax/etc

Good feedback.

Thanks

Charles
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RV-8 O-360

Last edited by WingnutWick : 06-12-2021 at 10:45 PM.
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  #2  
Old 06-12-2021, 05:20 PM
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n82rb n82rb is offline
 
Join Date: Jan 2007
Location: fort myers fl
Posts: 1,071
Default

that is a question for a tax accountant or tax lawyer in the states that you are conducting the sale in. for the most part, if the state collects tax on aircraft you will pay it.

as for tax write offs, the only real way to if its a business use. again, a question for a tax professional in your state.

bob burns
rv-4 N82RB
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  #3  
Old 06-12-2021, 05:44 PM
abwaldal@gmail.com abwaldal@gmail.com is offline
 
Join Date: Jan 2017
Location: Battle Ground WA
Posts: 301
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Ya have somebody else buy it and you get to fly it. BUT I haven't found anybody willing to do it for me.
Walking on quick sand with the tax man on business deduction of aircraft unless you actually are in the aircraft business sales etc.
My accountant says it's the quickest way to get audited.
Ha Ha Art
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  #4  
Old 06-12-2021, 06:27 PM
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MacCool MacCool is online now
 
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Location: central Minnesota
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The door on tax write-offs for most transportation items...cars and airplanes...has been slammed pretty solidly by the IRS. You can probably deduct the portion of expense that is used strictly for business, but your supporting logs had better be pristine because the IRS will be wanting a closer look. There are very few IRS flags that are redder than trying to deduct a car or airplane. My CFI used to be my CPA before he retired. We've talked about this extensively.
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  #5  
Old 06-13-2021, 09:38 AM
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Join Date: Apr 2019
Location: Muir Beach, CA
Posts: 83
Post Yes, butÖ

I am in the process of purchasing an 7a for business. So, here is the short version. We discussed this with our accountant, lawyer, insurance, etc. about the best way to set it up. For us, the plane will be in the company name (you can also do LLC). We will be keeping meticulous logs of all travel, maintenance, and costs. For us, the goal is to have 100% use towards business, especially in the first year. For the first 5 years, (Iím told), the company use needs to be above 50%. We have no intention of dipping down below 90%. Costs are deductible and plane is rapid (bonus) depreciation. We want to avoid any potential claw-back that could occur with a shift to too much personal use.

We put 20% down, financed through Banterra Bank and insured with Falcon. Transition training with the above poster, Tom Berge. All great to work with.

As for us, we have an electrical contracting company in California that does commercial solar installations throughout the state, so are traveling to a variety of remote areas.

If I want to do a personal trip, I can always rent a 172 or Arrow. But, those are sooo boring
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  #6  
Old 06-13-2021, 10:45 AM
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WingnutWick WingnutWick is offline
 
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Location: Lemoore
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PDexter,

Good info, this is similar to what a few of my friends also do. I too am in CA. I'm curious, what's driving the 50% limit?

Charles

Quote:
Originally Posted by - Poindexter - View Post
I am in the process of purchasing an 7a for business. So, here is the short version. We discussed this with our accountant, lawyer, insurance, etc. about the best way to set it up. For us, the plane will be in the company name (you can also do LLC). We will be keeping meticulous logs of all travel, maintenance, and costs. For us, the goal is to have 100% use towards business, especially in the first year. For the first 5 years, (Iím told), the company use needs to be above 50%. We have no intention of dipping down below 90%. Costs are deductible and plane is rapid (bonus) depreciation. We want to avoid any potential claw-back that could occur with a shift to too much personal use.

We put 20% down, financed through Banterra Bank and insured with Falcon. Transition training with the above poster, Tom Berge. All great to work with.

As for us, we have an electrical contracting company in California that does commercial solar installations throughout the state, so are traveling to a variety of remote areas.

If I want to do a personal trip, I can always rent a 172 or Arrow. But, those are sooo boring
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  #7  
Old 06-13-2021, 11:34 AM
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Location: Muir Beach, CA
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Quote:
Originally Posted by WingnutWick View Post
PDexter,

Good info, this is similar to what a few of my friends also do. I too am in CA. I'm curious, what's driving the 50% limit?

Charles
Charles,
Itís the IRS that set the 50% limit. Iím just an engineer, so an accountant may chime in on the details. I just know that we need to keep meticulous records, and (we) want to keep the business portion above 90% for the benefits.
Thanks,
Paul

PS - can you give me a hall pass for getting through the Lemore airspace on my way to Bakersfield?!
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  #8  
Old 06-14-2021, 03:15 PM
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WingnutWick WingnutWick is offline
 
Join Date: Jun 2013
Location: Lemoore
Posts: 259
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Thanks for the info.

And if I were flying at the time - I would have joined up with you That's my go to move whenever interlopers come trundling through the fights! Haha. That being said, only A, D, E got to 5K (BFM going on there, and all the way to the deck) and Showtime will tell you if they are hot or not. Where are you out of?

Quote:
Originally Posted by - Poindexter - View Post
Charles,
Itís the IRS that set the 50% limit. Iím just an engineer, so an accountant may chime in on the details. I just know that we need to keep meticulous records, and (we) want to keep the business portion above 90% for the benefits.
Thanks,
Paul

PS - can you give me a hall pass for getting through the Lemore airspace on my way to Bakersfield?!
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F-18E/F, Mk.58, CF-5
RV-8 O-360
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  #9  
Old 06-14-2021, 06:05 PM
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Join Date: Apr 2019
Location: Muir Beach, CA
Posts: 83
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LOL. So true. Seems like Iím always being diverted! The plane will be based, eventually, at Petaluma (O69) or Concord (KCCR).

Anyone have an available hangar at Petaluma?
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