Taxes, flying and new planes oh my

[James331]

So with tax season apon us, I'm trying to figure the best way to go.

Currently I'm working as a Medevac pilot (not 1099ed), outside of that employer, I'm also a freelance CFI and looking to get a LOA for scenic flights this summer.

Aside from things I normally write off, like my hangars, mx and fuel on my plane, last year I bought my 185F (no loan).

What's the best way to get any benifits from that large purchase?

One of my friends started a LLC and puts everything through that, not sure of it would help me, or if I even could being a employee at the medevac place.


Thoughts?

Thanks

 

[paflyer]

Not an accountant, but I would think you'd need to have had a business entity purchase the aircraft that you could then depreciate as a capital investment.

 

[N801BH]

So with tax season apon us, I'm trying to figure the best way to go.

Currently I'm working as a Medevac pilot (not 1099ed), outside of that employer, I'm also a freelance CFI and looking to get a LOA for scenic flights this summer.

Aside from things I normally write off, like my hangars, mx and fuel on my plane, last year I bought my 185F (no loan).

What's the best way to get any benifits from that large purchase?

One of my friends started a LLC and puts everything through that, not sure of it would help me, or if I even could being a employee at the medevac place.


Thoughts?

Thanks

Well.... YOU do get to write off the state sales tax..........

 

[texasag93]

I am not an accountant, but you can depreciate the airplane that you use for a business purpose. Sole proprietorship/LLC/Scorp/Ccorp, it does not matter.

 

[RotorAndWing]

So with tax season apon us, I'm trying to figure the best way to go.

Currently I'm working as a Medevac pilot (not 1099ed), outside of that employer, I'm also a freelance CFI and looking to get a LOA for scenic flights this summer.

Aside from things I normally write off, like my hangars, mx and fuel on my plane, last year I bought my 185F (no loan).

What's the best way to get any benifits from that large purchase?

One of my friends started a LLC and puts everything through that, not sure of it would help me, or if I even could being a employee at the medevac place.


Thoughts?

Thanks

Hire an accountant.

 

[James331]

I'm going to get an accountant, no doubt. I wanted to tap the knowledge here too.

 

[JoseCuervo]

You can only write it off against income from your non-wages.


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I think.

 

[Henning]

Did you form the company you are seeking to haul the rides under last year? The people I know who split use with their plane have it in the company's name and rent it to themselves at a fair market value for personal use. It makes the record keeping clear and simple.

 

[JimNtexas]

I'm going to get an accountant, no doubt. I wanted to tap the knowledge here too.

Some things to ask your accountant or Enrolled Agent:

1) What kind of depreciation can I take on my airplane? Would section 179 depreciation make sense?

2) I can document training costs that are required for my business as a professional pilot. Are these deductible? Might I be eligible for the opportunity credit?

3) If I take losses year after year might the IRS challenge my return?

4) Am I keeping the right kind of records?

5) (If applicable) I haven't filed for tax year 20xx. What do I need to do to come in from the cold?