Topper
Pre-takeoff checklist
Just wanted to get your thoughts on reimbursements of expenses. My partner and I own a plane, I am a pilot and he is not. We own real estate in several states, some he owns alone, some I own with him. We typically travel together to look at the out of town properties, his expertise is the leasing/tenant side and mine is the construction/maintenance side.
The properties are all owned by different entities, often with different ownership mixes, with my partner owning some percentage of everything. We have a separate checking account for the airplane. The easy thing is to set a fair rate for the plane to cover the cost of fuel/mx/engine and have each entity reimburse the airplane account. My fear is that this starts to look like a commercial operation.
We don't charge the entities for our time, that is just part of ownership. We could charge for our time, get reimbursed, then put the money back in the airplane account. Seems like a ridiculous amount of extra effort to accomplish the same thing.
Not sure who would ever know or care how we are doing it, but if there is a proper way to do it and keep big brother happy, I prefer to do it correctly.
Thanks,
Jim
The properties are all owned by different entities, often with different ownership mixes, with my partner owning some percentage of everything. We have a separate checking account for the airplane. The easy thing is to set a fair rate for the plane to cover the cost of fuel/mx/engine and have each entity reimburse the airplane account. My fear is that this starts to look like a commercial operation.
We don't charge the entities for our time, that is just part of ownership. We could charge for our time, get reimbursed, then put the money back in the airplane account. Seems like a ridiculous amount of extra effort to accomplish the same thing.
Not sure who would ever know or care how we are doing it, but if there is a proper way to do it and keep big brother happy, I prefer to do it correctly.
Thanks,
Jim