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My understanding is that returns are selected for audit and THEN the audit
begins. I don't know how that IRS would select out returns with aircraft expenses. Aircraft expenses are deducted as "maitenance", "rent", "travel", "education" and "depreciation". There is no line item for "airplane" expense. If you return was actually selected for audit, THEN you could reasonable expect everything including aircraft expenses to be examined, but I don's see how deducting aircraft expenses would trigger an audit. The bottom line is that if travel by private aircraft is an "ordinary and nessesary" expense for your business, then you can (and should) deduct it. Mike MU-2 "Greg Faris" wrote in message ... The question may be mostly oriented toward how the FAA will view your activity, however we must consider equally how the IRS will view it. In this respect, Ron Rosenfield's posts are of interest, as he has experience with this end. Ron - You make it sound almost rosy. Did the IRS ever disallow any of your expenses? Did you deduct all expenses as business expenses - hangar, insurance, currency requirement costs etc etc? Do you feel, as some have said, that aircraft usage/ownership in business is a red flag for IRS audits? Greg Faris |
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