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Recently, Steven P. McNicoll posted:
"Neil Gould" wrote in message ... If the club didn't have to pay for a pilot for services rendered that they received payment, then the club had a net profit from the pilot's contribution. Not necessarily. They could also have a net loss or they could break even. I wasn't referring to their year-end financial report. At any rate, I suspect that most laws and rules are written at a certain level of naiveté and it is the unintended consequences that lead to such ambiguities as those we're discussing. A service that you get for free that you would otherwise have to pay for is recorded in the credits column, and just that could qualify the service as a commercial transaction. If that service is of sufficient value, it *will* be of interest to the IRS and thus the FAA and so forth, regardless of the year-end financial picture. Bottom line as I see it is that unless someone has a bug up their posterior, this ferry flight is unlikely to become an issue for anyone unless the club picks up the cost of the trip. Neil |
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