AOPA Twin Comanche

Nathan Young wrote:

Is that the money AOPA put into it, or market value? Wouldn't the
cost basis be the market value?

In the case of purchased items, it's what AOPA paid for them. In the case of
donated items, it's what AOPA would have paid for all the labor and materials
had they not been donated.

Which brings up another point. If you keep the plane, you pay taxes on whatever
AOPA says the value is. If you sell the plane, you pay taxes on what you got for
it. Which is probably a lot less than $225,500.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to have
been looking for it.

Why taxes on what you sold it for? It's not an investment, so capital gains don't
apply. You already paid taxex on the "income" of the prize value.

And if you did pay taxes on the sale, wouldn't you be able to write off the
difference as a loss?

Dave Reinhart



"G.R. Patterson III" wrote:

Nathan Young wrote:

Is that the money AOPA put into it, or market value? Wouldn't the
cost basis be the market value?

In the case of purchased items, it's what AOPA paid for them. In the case of
donated items, it's what AOPA would have paid for all the labor and materials
had they not been donated.

Which brings up another point. If you keep the plane, you pay taxes on whatever
AOPA says the value is. If you sell the plane, you pay taxes on what you got for
it. Which is probably a lot less than $225,500.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to have
been looking for it.

You pay taxes on the planes value at the time you win it. Those taxes
are due the April 15th after you win it, assuming you normally file your
taxes only on 4/15. If you sell the plane that only affects your tax
bill if you sell it for more than AOPA says it was worth when you got
it. But that's true for any asset.



David Reinhart wrote:

Why taxes on what you sold it for? It's not an investment, so capital gains don't
apply. You already paid taxex on the "income" of the prize value.

And if you did pay taxes on the sale, wouldn't you be able to write off the
difference as a loss?

Dave Reinhart



"G.R. Patterson III" wrote:


Nathan Young wrote:

Is that the money AOPA put into it, or market value? Wouldn't the
cost basis be the market value?

In the case of purchased items, it's what AOPA paid for them. In the case of
donated items, it's what AOPA would have paid for all the labor and materials
had they not been donated.

Which brings up another point. If you keep the plane, you pay taxes on whatever
AOPA says the value is. If you sell the plane, you pay taxes on what you got for
it. Which is probably a lot less than $225,500.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to have
been looking for it.

You pay on the April 15th in the following year (ignoring estimated taxes).
If you sell it, then the sale price is the value and it doesn't matter what
AOPA says it was worth. If you use it and then sell it, you would have to
add the depreciation from your use to the sale price. If you keep it, you
will have to pay taxes on what it is worth but if you think that AOPA's
estimate is too high then you can get an appraisal. The IRS could challenge
your appraisal but AOPA doesn't just declare the value and that's it.

Mike
MU-2

"Newps" wrote in message
...
You pay taxes on the planes value at the time you win it. Those taxes are
due the April 15th after you win it, assuming you normally file your taxes
only on 4/15. If you sell the plane that only affects your tax bill if
you sell it for more than AOPA says it was worth when you got it. But
that's true for any asset.



David Reinhart wrote:

Why taxes on what you sold it for? It's not an investment, so capital
gains don't
apply. You already paid taxex on the "income" of the prize value.

And if you did pay taxes on the sale, wouldn't you be able to write off
the
difference as a loss?

Dave Reinhart



"G.R. Patterson III" wrote:


Nathan Young wrote:

Is that the money AOPA put into it, or market value? Wouldn't the
cost basis be the market value?

In the case of purchased items, it's what AOPA paid for them. In the case
of
donated items, it's what AOPA would have paid for all the labor and
materials
had they not been donated.

Which brings up another point. If you keep the plane, you pay taxes on
whatever
AOPA says the value is. If you sell the plane, you pay taxes on what you
got for
it. Which is probably a lot less than $225,500.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to
have
been looking for it.

"Mike Rapoport" wrote in message
k.net...
You pay on the April 15th in the following year (ignoring estimated taxes). If you sell it, then the sale price is the
value and it doesn't matter what AOPA says it was worth. If you use it and then sell it, you would have to add the
depreciation from your use to the sale price. If you keep it, you will have to pay taxes on what it is worth but if
you think that AOPA's estimate is too high then you can get an appraisal. The IRS could challenge your appraisal but
AOPA doesn't just declare the value and that's it.

Mike
MU-2



So it would be possible for some to win the plane then sell it to someone for a ridiculous price, and declare that as
the taxable value of the plane...

"Blueskies" wrote in message
m...

"Mike Rapoport" wrote in message
k.net...
You pay on the April 15th in the following year (ignoring estimated
taxes). If you sell it, then the sale price is the value and it doesn't
matter what AOPA says it was worth. If you use it and then sell it, you
would have to add the depreciation from your use to the sale price. If
you keep it, you will have to pay taxes on what it is worth but if you
think that AOPA's estimate is too high then you can get an appraisal.
The IRS could challenge your appraisal but AOPA doesn't just declare the
value and that's it.

Mike
MU-2



So it would be possible for some to win the plane then sell it to someone
for a ridiculous price, and declare that as the taxable value of the
plane...


Well you can't sell it to your wife for a dollar but if you sell it to an
unrelated third party for a reasonable sum then that is the value.

Mike
MU-2

David Reinhart wrote:

Why taxes on what you sold it for?

Lagally "the value of a thing is what that thing will bring". If the most you
can get for that plane is $200,000, that's the legal value of it for tax
purposes.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to have
been looking for it.

"G.R. Patterson III" wrote in message
...


David Reinhart wrote:

Why taxes on what you sold it for?

Lagally "the value of a thing is what that thing will bring". If the most
you
can get for that plane is $200,000, that's the legal value of it for tax
purposes.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to
have
been looking for it.

One nice thing about winning this airplane or any of the planes given away
by AOPA is that there will probably be people contacting you from day one
asking if you want to sell it. It wouldn't suprise me if AOPA doesn't have a
list already of people who want to buy it from the winner.

Think aout it. If you were in the market for a nicely updated light twin
wouldn't you call AOPA and ask them to give the winner your name?