Taxing questions..

BellyUpFish

BellyUpFish

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Backtothesand
Hey guys-

I was thinking about tax time and had a question:

Let's assume a CFI, who isn't currently CFIing. I.E. No 1040 form. No income from CFI flying.

However, in order to keep this certificate I had to take a refresher course. Is this deductible?

What about getting a BFR?

I am currently getting a 1099-MISC from a company for part time flying, so I know the usual items of deductions there, but I may not be doing that for very long - plane is for sale and isn't going to be replace - so I'm thinking about next year.

Next year, I'll need a BFR and I won't be doing any CFI flying, most likely. If I do, it'll be the occasional FR here or there.

Will my BFR be deductible? Also, lets say, instead of a BFR, I decide to tack on some additional training say a SES. Being a CFI, this doesn't make me "eligible for a new job" I don't think (and I could be wrong there) and would think this could be claimed to "improve current skills" and thus, deductible?

Any CFI's out there that are not CFIing and still deduct the occasional item?
 
I've always deduct my renewal, BFR, medical, hangar, aircraft, fuel burnt, jepp, etc. Only thing I've never been able to have my CPA deduct was been my skydiving stuff since I don't actually make money with it and he doesn't feel it would be up to snuff.
 
I'm not a CFI, nor an accountant, nor an attorney, and did not sleep in an Holiday Inn last night but:
It is unlikely these are deductible business expenses. The law (IRC §162) states, "There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business…" Since there does not appear to be a business being carried on, these amounts would not be deductible as business expenses.

Found this when I had a similar question re my profession
 
Guess I need to start flying as a CFI 15 or 20 hours a year...
 
You might be able to stretch the CFI stuff into the general "pilot" income that is going on, but if you've not got any CFI/Flying business activity, it's not going to "fly".
 
There needs to be some "piloting" income to deduct the expenses from. The ability to deduct expenses from an activity that is not generating any income is quite limited--useful when setting up a business that is not yet generating an income. Without an income, the activity quickly becomes classified as a hobby instead of a business for IRS purposes.

Three years comes to mind but I don't know if that's correct. I think you need to be able to show that you are attempting to make a business out of it.
 
Seems I remember it being profitable 3 out of 5 years maybe? I dunno. :dunno:
 
Can you document that you advertised your services as available during that tax year? I had unrented office rental property for which I could deduct expenses because it was advertised "for rent" - same logic may apply here.
 
I'm on the list as a CFI at the airport and on their website. ;)

I've got flying income for 2015 and 2016, so I'll be ok there..

And I can pick up enough flying to have a 1099 coming from somewhere..

Just thinking down the road..
 
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