"Tony Cox" wrote in message
hlink.net...
"Rob Thomas" wrote in message
...
Mike, you're correct. There are no red flags.
How would you know?
Each year (as I understand it), the IRS top brass have a
meeting to decide exactly what criteria will be used to
decide who gets audited. This is in addition to the 'base
rate' random auditing. Anything 'unusual' can only increase
your chance of being audited if it is statistically worth
devoting the auditors time to it. Tax fairness be damned;
its the $$$'s they want.
A one-man LLC grossing (say) $250K while expensing
25% of that in travel expenses (depreciation, operating
expenses, recurrent training) is certainly 'unusual', and
likely to yield the 'low hanging fruit' that the IRS auditors
love to munch on.
Depreciation, maitenance, operating expense (travel)and training are all on
different lines and, except for depreciation, there is no mention of an
airplane at all. I agree that there needs to be a real basis for using a
private airplane for travel but since there is no mention of the word
"airplane" anywhere on a tax return, I can't see how expensing the business
use of an airplane could be a "red flag".
Mike
MU-2
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