Hypothetical tax question

pd8

pd8

Filing Flight Plan
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fly_nalda
Hypothetically, if I have some big capital gain, I have to pay fed and state tax (MD). Is there a clever way to write it off by buying airplane? My wife hates flying but I am trying to find a good excuse to buy one that she can’t deny.
 
No, typically not, unless you own a business that can justify it as a business expense. Which if you are asking is probably no. Large purchases of items that could be used for non business purposes like an airplane is one of the first things an auditor will be looking for.
 
There are fairly strict limits on how much capital gains you can offset with business expenses - as in it's hardly worth it for people with large capital gains. It's time to sell some underperforming stocks at a loss.
 
pd8 said:
Hypothetically, if I have some big capital gain, I have to pay fed and state tax (MD). Is there a clever way to write it off by buying airplane? My wife hates flying but I am trying to find a good excuse to buy one that she can’t deny.
Click to expand...
There's 1031 Starker exchanges, but if you've already incurred the loss, it's probably too late, and though "like kind" property isn't as limiting as normal English would have you believe, getting most gains into airplanes would be unlikely. But talk to a tax guy about your specifics, which you haven't shared here.

Paul
 
Contact Kyle Kamman at ATC (Aviation Tax Consultants). 812-342-9589 x 105.
They are really great to work with and know the Aviation Tax codes nationally.
Aviationtaxconsultants.com
 
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