papamike
Well Known Member
Hi everybody. I know I've read posts about using the airplane itself as a tax deduction, but has anybody looked into using the sales tax deduction on large purchases, for separate portions of the RV kit? For example, I bought the wing kit this year. I'd like to look into calling that a large expense under the aircraft category. Of course I'd probably do it again in subsequent years for the fuselage, etc.
I'll quote a CPA friend of mine:
'That?s an interesting question. I can?t find anything authoritative about that specific situation. I can see a rationale for why it should qualify but I think it is likely the IRS would dispute it under audit. This is because the instructions make a point of mentioning that sales tax deductions for homes can include building materials ? yet they don?t make a similar statement under the section for boats and aircraft."
My one response to this is that I think you could argue that building materials for a home are common. I would think that a kit-built airplane is so ?non-mainstream? (couldn?t think of a better word) that they may not even have thought of it.
Not wanting to cause a tax revolution...well...
Just want to save a little money where I can .
I'll quote a CPA friend of mine:
'That?s an interesting question. I can?t find anything authoritative about that specific situation. I can see a rationale for why it should qualify but I think it is likely the IRS would dispute it under audit. This is because the instructions make a point of mentioning that sales tax deductions for homes can include building materials ? yet they don?t make a similar statement under the section for boats and aircraft."
My one response to this is that I think you could argue that building materials for a home are common. I would think that a kit-built airplane is so ?non-mainstream? (couldn?t think of a better word) that they may not even have thought of it.
Not wanting to cause a tax revolution...well...
Just want to save a little money where I can .