Aviation deductions? Tax quiz!

[Tram]

Ok so I've got a question.

I've been considering throwing a 430 in the -6.

I fly for hire on a 1099 in an aircraft equipped with a 530/430 combo. I'm also an instructor.

Seems like a new GRT EFIS and a 430 might mKe good use of "keeping proficient" on said systems for my part time gig or on the instructor front.

Anyone dealt with anything like this on their personal birds?

[Ironflight]

How well do you like to be audited? you might be completely in the right - but I will bet you'll get a letter.....and the IRS presumes you're guilty unless you go to GREAT LENGTHS to prove your innocence. It is a war of attrition. The IRS folks have until they retire - do you?

Paul

[BobTurner]

Why stop there? Why not call all of your RV flying education needed to maintan your job skills? You can interpret the rules however you like, but the IRS will most likely demand something a little more reasonable.

[Tram]

I'm not looking to pull anything over on anyone.

I can deduct headsets and all other small flying accessories as part of being a CFI and commercial pilot, I thought I'd see if this is legit.

I have no desire to go below board on this deal.

[BobTurner]

Originally Posted by Tram

I'm not looking to pull anything over on anyone.

I can deduct headsets and all other small flying accessories as part of being a CFI and commercial pilot, I thought I'd see if this is legit.

I have no desire to go below board on this deal.

Strictly speaking you are supposed to pro rate those headset costs, deducting only the fraction of the time you use them to earn money. But excluding personal flying.

So the cost of education - studying for your 430 - manuals, etc - should be deductible, again pro rated by the fraction of time flying for money divided by total time flying. The cost of the box itself is only deductible to the extent it is used to give instruction for hire - which of course is not allowed in your EAB. If you pull the box out, put it in a power supply, and use it to teach others, for a fee, then you can pro rate that fraction of the cost.