In rec.aviation.owning Bob wrote:
For those of you using your plane for business...

1. What is the tax deductable rate for hourly use of aircraft (e.g.
for cars it is $.36 a mile I believe)?

Don't know.

2. Is it better to own my aircraft personally (to prevent the
aircraft being owned by the company in the event of a lawsuit) and
then have the business (LLC) "rent" from me personally for a certain
amount? How much is this "rent" and is it based on actual costs or
future costs (overhaul, etc)? Taxwise I will have to declare the rent
as income if it is more than my operating costs, right? But the
business gets to claim it as an expense, right? But how to convince
the IRS of the actual and future costs of aircraft ownership?

Don't know, you need a tax attorney familiar with aircraft for real
information.

If the company rents the plane, you can't deduct maintenance.

If you rent the plane, the company can deduct maintenance.

But again, you need an attorney to make sure whatever you do isn't
concidered tax evasion by the IRS.

3. Any good books, publications, or literature you can point me to
that address this specific subject?

Nolo Press would probably be the place to start.

4. I'm fairly new to owning my own business (LLC- I've had a very
small sole proprietorship in the past). Can any of you recommend good
info to read up on that is specific to LLCs particularily in the area
of sheltering personal property and how to get the most out of the LLC
tax wise?

When I set up my LLC, I did it through an attorney who gave me the
legal lecture as part of the deal.

For $100, I got the accounting lecture from a real accountant.

I'd suggest you go see one of each unless you are one, but you probably
wouldn't be asking these questions here if you were.

The biggest point they both made was to NEVER mix business and
personal stuff of any kind or the "protection" of a LLC isn't
worth spit if you find yourself in a courtroom.

5. What are your experiences with using the aircraft for business
(cost wise) and has it penciled out for you?

For my business, the accountant said don't even try other than for
business transportation. Since I haven't had anywhere near a legitimate
business reason to fly anywhere, I haven't bothered with it.

It will depend on what kind of business you are in; that's why you
pay a real account about $100.

6. One last question since you've been so darn good to hang in there
this long ... top three tips for a new small business owner?

Watch your cash flow.
Watch your cash flow.
Watch your cash flow.

Thanks a bunch folks!

Bob

You also need a real set of books, though these days they will probably
be electronic. I used Quickbooks which the accountant highly recommended.

Most accountantss these days use Quickbooks and for a small fee ($50 for
that) the accountant blessed how I had set them all up (after a few changes).

--
Jim Pennino

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