Legality Question RE: Commercial ops and tax deductions

[sferguson524]

So, hypothetical situation, I am an officer of a business, and the business owns an airplane for the bonus depreciation and tax bennies. I am an instrument rated private pilot. My business flying is tax deductible for the business. Is my currency flying also tax deductible for the business as I would be doing my flying in furtherance of said business?

 

[mrkbbd]

So, hypothetical situation, I am an officer of a business, and the business owns an airplane for the bonus depreciation and tax bennies. I am an instrument rated private pilot. My business flying is tax deductible for the business. Is my currency flying also tax deductible for the business as I would be doing my flying in furtherance of said business?

I would consider that education and safety training, but would make sure to keep a VERY good record of it...getting advanced ratings doesn't usually count unless your job requires that specific rating or you're personally trying to get another job (not a business deduction, personal one).

However, what % is actual business use and what is personal...the way you describe it is you aren't really using the airplane for business use, just have it there for depreciation...

 

[N801BH]

If you are a liberal,,, you will get away with it.. Just consult Harry Reid..

A conservative will go to jail...

.. Jus kiddin....

My guess is if the flying is for the business, then it is deductable... YMMV.

 

[Badger]

The answer was in an email to Lois Lerner.

 

[sferguson524]

If you are a liberal,,, you will get away with it.. Just consult Harry Reid..

A conservative will go to jail...

.. Jus kiddin....

My guess is if the flying is for the business, then it is deductable... YMMV.

You're killing me.. Let's keep it out of the spin zone. But i agree completely

 

[JimNtexas]

If you can document the business use of your airplane then those deductions are fine.

I expect deducting currency training would generate an audit, but I think this deduction is defensible.

The AOPA has a good handout on aviation taxes.

Here is what they say:

The second question may come into play when you use an aircraft for business trips and make an investment in an instrument rating in order to get better use out of your aircraft. The question now is whether the additional flight training maintains or improves the skills needed in your job.

There are a number of Tax Court cases that confirm the deductibility of this type of flight training expense. Similarly, the courts have also allowed tax deductions for training and proficiency flying required by the FARs.

Deductions for activities that have 'elements of personal pleasure' are audit bait. Airplanes, boats, and horses all have this issue.

Having said that, if your flying is really, no kidding for business; and you're willing to defend yourself (or hire someone to do it for you) in an audit, then go for it!