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  #11  
Old 03-26-2015, 08:02 PM
stamper stamper is offline
 
Join Date: Dec 2012
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not sure about the tools; but, if you us your plane for the purpose of your business you can deduct it over a 6 year period under MACRS. You can only deduct your plane when it is done and flying. Once it is flying You have to keep and report the hours flown for business and any personal. The percent of personal hours for pleasure you use the plane will not be deductible. So if you fly a total of 100 hrs and 90 of it was for business and 10 for personal then 90% of the total cost of maintaining the plane, fuel, insurance and any other expense would be deducted for that year; 10% would not. It is real easy to keep track of since we all keep a log book. The business trips have to be legit though you can't fly over to a pancake breakfast and deduct it because you talked to Joe about your company.
I write my plane off every year, and have ever since the first year I had my license. I wish I could deduct it as I built it because I have a pile of money into my rv10 already.
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  #12  
Old 03-27-2015, 06:34 AM
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Jesse Jesse is offline
 
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I have worked with several people who depreciate their RV's. Tools, not so much. The rules on depreciating an aircraft start when it first becomes an aircraft (airworthiness inspection and first flight), not during the build. Unless the parts can be used by your business, you can't start the depreciation until it's an airplane. There is currently a special bonus depreciation schedule allowed by the IRS which allows a large portion to be depreciated in the first year.

It would be a legit business trip if you fly to meet with Joe to talk about your business and have pancakes while you're there.
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Last edited by Jesse : 03-27-2015 at 06:36 AM.
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  #13  
Old 03-27-2015, 07:33 AM
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rleffler rleffler is offline
 
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Quote:
Originally Posted by rv7boy View Post
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. 😳
One that comes to mind, was if you had a business that manufactured products to be specifically installed in RVs. You would need an RV to use for prototyping and testing. I think this would be an appropriate use viewed by the IRS, but like others have stated, make sure your tax adviser is on board with the approach.

I'm doubtful you'll get many folks volunteer their tax status. Nobody wants to call attention to themselves by the IRS.
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  #14  
Old 03-27-2015, 09:45 AM
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Palamedes Palamedes is offline
 
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More good advice guys.

I will most assuredly be actually using the plane to fly back and forth to meet clients. There is no "fibbing" about the use, it will be for business a lot of the time. Also pleasure of course.. I mean come on it's an airplane =)
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  #15  
Old 03-27-2015, 10:22 AM
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aarvig aarvig is offline
 
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This has been a well traveled line of thinking but in the end the result is the same. Unless you want a visit from the IRS forget about depreciating your kit and tools. The only feasible way I can see them being depreciable is if you own a education center and are building the aircraft as part of an educational program that people pay for.
This would have to be a legit business with numerous students, not just you and your significant other.
A flying RV could be depreciated if used in a commercial operation. I'm not one hundred percent sure on this though.
As far as I know, those are your options. Oh, lest I forget, if you own a buisness that requires you to travel you can depreciate all associated costs of that travel.
You're playing with fire if you don't have a solid reason to deduct. Boats, planes and RV's (recreational vehicles) are all red flags to the IRS.
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  #16  
Old 03-27-2015, 05:13 PM
stamper stamper is offline
 
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Jesse,

More then 50% of your time on a trip has to be business related in order to right it off so if your eating pancakes at a flying and just take a few minutes or a number of minutes to talk about your business it more then likely will not be able to legally deduct it as a business trip. I'm referring to casual talk in this this senario.
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  #17  
Old 03-28-2015, 07:19 AM
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frazitl frazitl is offline
 
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Just don't forget that when you sell it someday you will have to recapture as income any net revenue over the depreciated basis. This strategey works best for an asset whose value depreciates rapidly.
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