"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?


Negative. An exception to the rules about capital vs. repair is
that in a planned program of renovation, just about every stinkin'
thing can be capitalized until the project is done and all signed
off. So your basis would be $50,000 if not a bit less.

Fred F.