AOPA Twin Comanche

Rosspilot wrote:

Just wondering what you guys would do with that sweepstakes airplane if
Phil called you up and told you it was yours.

Keep or sell?



Keep it until the reality of paying for it sunk in. That should give me
about a year to get my MEL.....

--
Frank....H

They award it after the first of the year. That gives you a year to play with it,
then sell it to pay the taxes. Very few of the winners of the AOPA aircraft end
up keeping them. If they can afford to pay the taxes they can afford to buy an
airplane and probably already have.

If I won it, I might hold onto it long enough to get a multi rating and learn all
the whiz-bang stuff in the panel, then sell it and buy into an SR-22.

Dave Reinhart


Dave S wrote:

All these people who are keeping it are prepared to pay the "income tax"
hit from winning the plane at the end of the tax year, right?

Whats the value of the Twin Commanche? And.. 30% of that is??? (just
rough round numbers...)

Dave

Rosspilot wrote:

Just wondering what you guys would do with that sweepstakes airplane if Phil
called you up and told you it was yours.

Keep or sell?



www.Rosspilot.com

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.

David Reinhart wrote:

They award it after the first of the year. That gives you a year to play with it,
then sell it to pay the taxes. Very few of the winners of the AOPA aircraft end
up keeping them.

They did an article on this. No one has ever kept the plane they won
from AOPA. If I win any plane they gave away it would immediately go in
the hangar and up for sale.

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.

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.

David Reinhart wrote:

They award it after the first of the year. That gives you a year to play with it,
then sell it to pay the taxes.

If you live in a State that has a usage tax, that tax will be applicable within
a few weeks. New Jersey will have a letter in the mail to you within a few days
of the registration clearing at Oklahoma City. Furthermore, unless you pay the
income taxes in quarterly installments during the year, the Feds will hit you
with a late penalty next April. I *think* that's about 10%, but I'm not sure.

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

Kai Glaesner wrote:

I would like to see planes that more people can afford to keep....

They actually did that one year. They fixed up a TriPacer and threw in $10,000
cash for the taxes.

The main thing is that AOPA isn't doing this mainly to give one of the members a
plane. They do it mainly so that they can produce articles all year long about
fixing it up. If they stuck to fixing up low cost aircraft and including some
cash, the organization wouldn't get as much bang for the buck.

Now, let's say that AOPA fixed up a nice TriPacer again and I won it. I'd sell
that one just because I already have a better aircraft IMO.

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

"Kai Glaesner" wrote in message . com...

For me this gave rise to the question why AOPA puts a plane on the
sweepstakes that makes this decision so tough. Seems to me there will be
more "Sell"ers than "Keep"ers for this kind of plane in the world out there.
So what's next? A nice old Lear 23, beautifully restored?

I would like to see planes that more people can afford to keep....


So, you'd rather that AOPA gave away a clapped out C-150 every year?
Just kidding. It's not only the tax bill that keeps the winners
selling. Often the plane that they won does not really fit the
winner's mission profile. So, on top of a big tax bill (even if they
give away a more modest airplane), you're stuck with a plane that
doesn't necessarily fit the kind of flying that you do. Why keep it?

The current plane is an excellent example. If I were in the market
for a twin, the Twin Comanche would be near the top of my list.
Unfortunately, it really doesn't fit my mission profile (a lot of
backcountry flying). If I won it I'd certainly sell.

I seem to recall that within the past few years, AOPA pilot had a
"where are they now" article on the giveaway planes. All but a few
were immediately sold by the winners.

John Galban=====N4BQ (PA28-180)