That figgers.

Note: I'm not selling my plane.

2 More questions:

#1) Could I set up everything on a schedule C and claim a business - sole
proprietor ?

#2) Can you apply a 1031 tax exchange to an aircraft? , ie roll the $50,000
into a $75,000 aircraft and defer the taxes until I sell the $75,000 one.



"Ron Natalie" wrote in message
m...
Steve Foley wrote:
So if I bought a damaged aircraft for $5000, repaired it, painted it,
and
sold it for $50,000, I would be liable for taxes $45,000?

That's pretty much the way it works. If you hold it for a year, you are
taxed at the capital gains rate of 15% (plus whatever gouge your state
wants). If you sell it in under a year, you pay whatever your top
tax bracket is one the income.