Aircraft in Corporation or LLC?

Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or Limited
Liability Company? If so, can you write off maintenance/hangar costs (vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

Uh, never mind...I just got off the phone with my friend who is a CPA. This
won't work since the corporation is not formed as a business. Apparently
there are rules, called "Hobby Laws" which discourage people trying to write
off personal, recreational activities as corporation costs...

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or Limited
Liability Company? If so, can you write off maintenance/hangar costs (vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

Get a different accountant.

Unless you find the many possible ways to make your plane into a non-hobby
not practical, its a simple thing to do. The IRS cannot label your aircraft
as a hobby or luxury as easily as they can other things do to the fine work
of Bob Dole and other congress members. Your plane is presumed to be a
perfectly legitimate business asset unless you make it otherwise. This is
much differrent from raising animals, parachuting, and other expensive
hobbies.

How much flying do you do? What for? What's your profession? Would you be
willing to rent your airplane to a few friends or even strangers?

If your CPA didn't go over this with you, he was not qualified to answer
your question.




"Harry Shin" wrote in message
...
Uh, never mind...I just got off the phone with my friend who is a CPA.
This
won't work since the corporation is not formed as a business. Apparently
there are rules, called "Hobby Laws" which discourage people trying to
write
off personal, recreational activities as corporation costs...

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or Limited
Liability Company? If so, can you write off maintenance/hangar costs (vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

I was told if I may be able to use my airplane for my commercial flight
training or use it strictly as a time builder to help obtain further ratings
it may be able to be used as a valid educational expense for new career
training write off or something like that. My tax attorney is looking in to
this a little further for me will find out more after the holidays.


"Dude" wrote in message
...
Get a different accountant.

Unless you find the many possible ways to make your plane into a non-hobby
not practical, its a simple thing to do. The IRS cannot label your
aircraft
as a hobby or luxury as easily as they can other things do to the fine
work
of Bob Dole and other congress members. Your plane is presumed to be a
perfectly legitimate business asset unless you make it otherwise. This is
much differrent from raising animals, parachuting, and other expensive
hobbies.

How much flying do you do? What for? What's your profession? Would you
be
willing to rent your airplane to a few friends or even strangers?

If your CPA didn't go over this with you, he was not qualified to answer
your question.




"Harry Shin" wrote in message
...
Uh, never mind...I just got off the phone with my friend who is a CPA.
This
won't work since the corporation is not formed as a business.
Apparently
there are rules, called "Hobby Laws" which discourage people trying to
write
off personal, recreational activities as corporation costs...

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or
Limited
Liability Company? If so, can you write off maintenance/hangar costs
(vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

"NW_PILOT" wrote in message
...
I was told if I may be able to use my airplane for my commercial flight
training or use it strictly as a time builder to help obtain further
ratings
it may be able to be used as a valid educational expense for new career
training write off or something like that. My tax attorney is looking in
to
this a little further for me will find out more after the holidays.


If your "tax attorney" has to look into this you need a new tax attorney.
Education or training for a new career is never deductible. Education to
advance yourself in your current career is deductible so, if you are
currently employed as a commercial pilot, training for your ATP would be
deductible.

Mike
MU-2


"Dude" wrote in message
...
Get a different accountant.

Unless you find the many possible ways to make your plane into a
non-hobby
not practical, its a simple thing to do. The IRS cannot label your
aircraft
as a hobby or luxury as easily as they can other things do to the fine
work
of Bob Dole and other congress members. Your plane is presumed to be a
perfectly legitimate business asset unless you make it otherwise. This is
much differrent from raising animals, parachuting, and other expensive
hobbies.

How much flying do you do? What for? What's your profession? Would you
be
willing to rent your airplane to a few friends or even strangers?

If your CPA didn't go over this with you, he was not qualified to answer
your question.




"Harry Shin" wrote in message
...
Uh, never mind...I just got off the phone with my friend who is a CPA.
This
won't work since the corporation is not formed as a business.
Apparently
there are rules, called "Hobby Laws" which discourage people trying to
write
off personal, recreational activities as corporation costs...

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or
Limited
Liability Company? If so, can you write off maintenance/hangar costs
(vs
State corporation fees), and also protect your personal assets more
effectively?

Thanks,
Harry

You need to prove the training is required for you to keep your current
job. Training for another job is not deductable.

In addition to people telling you that it doesn't help you write stuff
off there is another down side. In some states (California for
instance) there is a minimum annual franchise tax on both corps and
LLCs of $800/yr.

"Harry Shin" wrote in message
...
Hi Guys,

I was wondering if anyone has their aircraft in a Corporation or Limited
Liability Company? If so, can you write off maintenance/hangar costs (vs
State corporation fees), and also protect your personal assets more
effectively?

My airplanes are owned by an S-Corp.

Since I am a professional pilot and flight instructor, lease my plane for
charters, and pay the same rent that I charge others when using it for
personal travel, it is easy to demonstrate the business purpose of the
airplane.

Your mileage may vary. See your professional tax advisor.

"Robert M. Gary" wrote in message
oups.com...
You need to prove the training is required for you to keep your current
job. Training for another job is not deductable.

That used to be true; there are now some circumstances allowing you to
deduct educational costs.

See a tax advisor and forget Usenet.

"Mike Rapoport" wrote in message
ink.net...

"NW_PILOT" wrote in message
...
I was told if I may be able to use my airplane for my commercial flight
training or use it strictly as a time builder to help obtain further
ratings
it may be able to be used as a valid educational expense for new career
training write off or something like that. My tax attorney is looking in

If your "tax attorney" has to look into this you need a new tax attorney.
Education or training for a new career is never deductible. Education to

I wouldn't shoot quite so fast. Depending on your employment status and
income level there are more government programs out there than even good
CPAs are often aware of. Back in 2000 the gub'mint helped me pay for night
school classes in programming at my local community college, thanks to the
"Hope Credit" or something like that. Added two simple pages (none of which
asked at all about job-relatedness) to my tax return and got me about $1000,
IIRC. I wouldn't be surprised if there are similar ways to write off flight
training, under at least some circumstances.

-cwk.