Depreciating aircraft parts, dealing with taxes, etc.
On May 10, 7:00 pm, Andrew Gideon wrote:
On Thu, 10 May 2007 16:18:34 -0700, Robert M. Gary wrote:
What taxable income are you trying to defer with depreciation???
I'm not sure that it's taxable income (which is part of my problem), but
I'm envisioning this asset called a "reserve account" growing over the
years until an overhaul is required.
- Andrew
Only the interest is taxable. Money put in by the owners to cover
expenses (now or future) shouldn't be taxable. If you owned a lunch
truck and needed to write a personal check to make payroll one month
you wouldn't tax that either.
However, depending on your state, you may owe a minimum state income
tax. In California the minimum tax for a corporation or LLC that has
an operation (i.e. airplane) in the state is $800/yr. I believe New
York and a few other states also have this "minimum franchise tax", so
watch out.
-robert
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