Mooney 252

E

ebetancourt

Line Up and Wait
Joined
Feb 12, 2010
Messages
695
Location
Middle Tennessee
Display Name
Ernie
Home Airfield
9TN9
I tried to sell my Mooney quickly, as-is. Bad idea. So it is headed to a Mooney shop Monday to get the two squawks fixed (fuel leak and it needs new donuts). Other than that I don't know of anything wrong with it.

It's here:
http://www.trade-a-plane.com/clsfdspecs/841369

I plan to pick up my Waco at the end of the month, looking for reasonable offer.

Ernie
 
Did you depreciate the Mooney for tax purposes? If so, have you explored a reverse 1031 exchange if you buy the Waco before you sell the Mooney?

ebetancourt said:
I tried to sell my Mooney quickly, as-is. Bad idea. So it is headed to a Mooney shop Monday to get the two squawks fixed (fuel leak and it needs new donuts). Other than that I don't know of anything wrong with it.

It's here:
http://www.trade-a-plane.com/clsfdspecs/841369

I plan to pick up my Waco at the end of the month, looking for reasonable offer.

Ernie
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wabower said:
Did you depreciate the Mooney for tax purposes? If so, have you explored a reverse 1031 exchange if you buy the Waco before you sell the Mooney?
Click to expand...
??? I am unfamiliar with the term.

I did depreciate it, but I have not claimed expenses the previous two years so it would not be a taxable gain on the sale. I am "trading" it so that I can reduce the sales tax. That has been a big part of my haste. Amounts to 7% of whatever I sell it for.:mad2:
 
Is your position regarding no taxable gain on sale supported by a tax opinion from your CPA?

ebetancourt said:
??? I am unfamiliar with the term.

I did depreciate it, but I have not claimed expenses the previous two years so it would not be a taxable gain on the sale. I am "trading" it so that I can reduce the sales tax. That has been a big part of my haste. Amounts to 7% of whatever I sell it for.:mad2:
Click to expand...
 
Good. The most-recent similar situation I worked on was treated differently, and even though the asset was converted to personal use, the sale was held as taxable due to prior depreciation claimed. If you aren't required to recapture the depreciation, there's no reason to jump through any 1031 (tax deferred exchange) hoops.

ebetancourt said:
Yes, it is.
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wabower said:
Good. The most-recent similar situation I worked on was treated differently, and even though the asset was converted to personal use, the sale was held as taxable due to prior depreciation claimed. If you aren't required to recapture the depreciation, there's no reason to jump through any 1031 (tax deferred exchange) hoops.
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It's the government, what can I say. If anyone can figure it out every time, I would be impressed. I am a CPA myself, but gave up trying to decipher the tax code many years ago. Any two people, including two IRS agents, are capable of interpreting the code differently on any two occasions.
 
ebetancourt said:
It's the government, what can I say. If anyone can figure it out every time, I would be impressed. I am a CPA myself, but gave up trying to decipher the tax code many years ago. Any two people, including two IRS agents, are capable of interpreting the code differently on any two occasions.
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Are you sure you're talking about the IRS and not the FAA? :)
 
gprellwitz said:
Are you sure you're talking about the IRS and not the FAA? :)
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When I was in ground school for my PP, if anyone commented "Hey! That doesn't make sense!" about a regulation, the instructor would say "This is brought to you by the same people who brought you the tax code."

John
 
I, I am starting to look to by a mooney, can you give me tel me where a can see yours with details...
 
I spent most of my "real" career structuring and marketing tax-related investment deals. Since then, I've followed the general provisions of the tax code as it relates to airplanes through attendance at NBAA conferences and seminars and other industry meetings, and occasional reference to the Master Tax Guide.

With no dog in the fight, I'd still recommend a close look at the tax rules governing disposition of personal property on which MACRS and/or Sec. 179 expenses have been claimed and the property then converted to personal use. Specifically, I would be concerned about failing to report a significant amount of sales proceeds (income) that might be deemed taxable (based on my reading of the text and examples in the Tax Guide.) YMMV

ebetancourt said:
It's the government, what can I say. If anyone can figure it out every time, I would be impressed. I am a CPA myself, but gave up trying to decipher the tax code many years ago. Any two people, including two IRS agents, are capable of interpreting the code differently on any two occasions.
Click to expand...
 
Hey guys, I may be trading up from my Tiger soon, and have been fearing the tax man. Reading this post, I'm wondering if there's something I can be doing to avoid paying 9.75% California sales/use tax on the next plane.

I'm familiar with 1031 exchanges in a real estate sense, is this do-able for aircraft? Also, how and what would you depreciate in the value of the plane? If someone can explain or private message me, I would very much appreciate it.

Thanks in advance...
 
Exchange rules are essentially the same. Most aircraft title/escrow companies are qualified intermediaries for forward exchanges, only a few specialized companies do reverse exchanges.

The primary benefit is to defer taxable gain that would otherwise be recaptured at ordinary rates, but state and local tax savings can be significant if the state law parallels federal law with respect to the exchange. You should talk to one of the CA companies who specialize in that stuff.

AA5Bman said:
Hey guys, I may be trading up from my Tiger soon, and have been fearing the tax man. Reading this post, I'm wondering if there's something I can be doing to avoid paying 9.75% California sales/use tax on the next plane.

I'm familiar with 1031 exchanges in a real estate sense, is this do-able for aircraft? Also, how and what would you depreciate in the value of the plane? If someone can explain or private message me, I would very much appreciate it.

Thanks in advance...
Click to expand...
 
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