Recently, Gatt posted:

"Helen" wrote in message
news:Nbt_i.6091$VB6.694@trnddc06...
And additional...
http://www.aopa.org/members/ftmag/ar...m?article=1467

Thanks, Helen. A couple of thoughts:

"The FAA's position on sharing expenses is not supported by the
language of
61.118(b), but pilots need to be aware of the FAA's policy. Current
FAA enforcement policy is so strict that if a private pilot ferries
an airplane at no charge, with no passengers on board, the FAA
position is that the free flying time is compensation for the private
pilot, and therefore a violation of 61.118. "
So the CFI was correct.

Note that the relevant condition is that the flying time is free. If the
pilot picks up the expense (possibly only 50% of the expense), then
there is no issue with this policy.

Neil