[airguy]

I heard an interesting conversation yesterday between two pilots with at least some knowledge of law and the tax code, discussing burning MOGAS in aircraft. The gist of the conversation was that since you are burning road-taxed fuel in a non-road vehicle, you can save your fuel receipts for all the aircraft fuel and deduct the road-tax from that fuel from your income taxes at the end of the year.

Not knowing much at all about the tax code on this subject, I thought I would ask if there is an educated, informed person here who can speak to this subject? Is this a legit deduction?

 

[andyrv]

Tax refund

I don't know about deducting the tax but the gas station near our lake cabin in Missouri stamps all our receipts for boat gas as off road fuel. Apparently a lot of our neighbors there apply to the state at the end of the year with all of their receipts and get the transportation taxes refunded. I have not personally done this.

As a side benefit of this nice lady (owns the gas station) providing this service the state audits her every year to let her know they are not happy with her providing this information/service to the public.

Andy

 

[the_other_dougreeves]

I heard an interesting conversation yesterday between two pilots with at least some knowledge of law and the tax code, discussing burning MOGAS in aircraft. The gist of the conversation was that since you are burning road-taxed fuel in a non-road vehicle, you can save your fuel receipts for all the aircraft fuel and deduct the road-tax from that fuel from your income taxes at the end of the year.

Not knowing much at all about the tax code on this subject, I thought I would ask if there is an educated, informed person here who can speak to this subject? Is this a legit deduction?

It might be legit, but not smart in my opinion unless you're going to pay the aviation gas tax instead. We have the airlines and their lobby trying to put the screws on us, claiming that we don't pay enough taxes. Do we really need to give them ammo that they can then shoot at us?

I would happily pay the aviation tax on 91 octane, ethanol-free mogas at my home airport (or any other, for that matter), assuming it's about the same price. My desire for mogas has nothing to do with money, it's about the lead and what it does to the Rotax.

TODR

 

[RWoodard]

I don't know if this would still apply, but I looked into this about 10 years ago when we were running gas station gas in a 7AC Champ. As someone already said, it was possible to avoid the "road" tax by jumping through a few hoops, but then there was an "aviation" use tax that would be due in its place.

In the end, it was a wash and we didn't do anything at all.

Death and taxes...

 

[F1Boss]

Bennair, Dunnatt

Yep, you can get state road use tax back -- they (State of Texas) had me save my receipts for the 1st year, and then took me for my word after that. Piece o cake really, and this works for lawn mowers, boats, tractors -- any off road use. Texas also has an off road diesel fuel that is dyed a different color (obvious in an inspection) that has the tax removed up front.

You have to note this tax rebate as income on your federal return, and pay income tax on it.

Texas does not tax non-commercial aircraft as personal property.

Of course, the ethanol additive keeps us from using MOGAS anyway, so the whole point is moot. DOH!

Carry on!
Mark

 

[wingtime]

You have to note this tax rebate as income on your federal return, and pay income tax on it.

Ummm why would you pay tax on money that was already yours? It's not income just a refund of your own money.

 

[WingsOnWheels]

Since there are a number of Texas residents in this thread:

Don't forget, since we don't have state income tax, you can write off your sales tax also. Pump gas also has sales tax, it is just not broken out on the receipt. I save every single receipt from every purchase throughout the year and break out the sales tax. I also take the sales tax on fuel purchases as long as I can determine the state/county/city sales tax rate. Yes, the adding machine is more tiring than the cleco pliars that time of year.

 

[airguy]

Since there are a number of Texas residents in this thread:

Don't forget, since we don't have state income tax, you can write off your sales tax also. Pump gas also has sales tax, it is just not broken out on the receipt. I save every single receipt from every purchase throughout the year and break out the sales tax. I also take the sales tax on fuel purchases as long as I can determine the state/county/city sales tax rate. Yes, the adding machine is more tiring than the cleco pliars that time of year.

...except that the sales tax deduction for federal income tax is supposed to be phased out starting this year, or at least that's the rallying cry amongst the politicos.