Aircraft tax question

Ok, I know we have some tax experts out there. Tell me. When you sell an
aircraft, what taxes apply to the seller? Is this a capital gains/loss
situation? We're talking about an aircraft owned by and registered to a private
individual and used for pleasure.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.

ok... I'm not a tax expert... but when you sell a car.. what taxes apply to
the seller..
is it a capital gains or loss.. if you intend to take a capital gain/loss be
sure to factor in depreciation

I can't ever imagine it being a gain, unless it's an antique bird that has
really appreciated in value..

the buyer pays all sales taxes..
BT

"George Patterson" wrote in message
news:BDxdf.1644$Pa4.1059@trndny01...
Ok, I know we have some tax experts out there. Tell me. When you sell an
aircraft, what taxes apply to the seller? Is this a capital gains/loss
situation? We're talking about an aircraft owned by and registered to a
private individual and used for pleasure.

George Patterson
Drink is the curse of the land. It makes you quarrel with your
neighbor.
It makes you shoot at your landlord. And it makes you miss him.

BTIZ wrote:
ok... I'm not a tax expert... but when you sell a car.. what taxes apply to
the seller..

According to the IRS, the selling price of the car is taxed as income. I would
prefer that that is not the case with aircraft.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.

George Patterson wrote:
BTIZ wrote:
ok... I'm not a tax expert... but when you sell a car.. what taxes apply to
the seller..

According to the IRS, the selling price of the car is taxed as income. I would
prefer that that is not the case with aircraft.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.


The profit on anything you sell is taxed as income.

How many used things have you sold at a profit after repairs, etc.?

--
Jim Pennino

Remove .spam.sux to reply.

George Patterson wrote:

BTIZ wrote:

ok... I'm not a tax expert... but when you sell a car.. what taxes
apply to the seller..


According to the IRS, the selling price of the car is taxed as income. I
would prefer that that is not the case with aircraft.

Well, it has been a while since I read the tax code, but I believe this
is true only if you sell the car for more than you paid for it. This is
very unlikely with most cars...


Matt

George Patterson wrote:
BTIZ wrote:
ok... I'm not a tax expert... but when you sell a car.. what taxes
apply to the seller..

According to the IRS, the selling price of the car is taxed as income. I
would prefer that that is not the case with aircraft.

It's not the case with either the car or the aircraft which the IRS
treats the same. The taxable gain is the difference between the
sales price and the basis (essentially what you paid for it). Car's
rarely appreciate.

According to the IRS, the selling price of the car is taxed as income. I would
prefer that that is not the case with aircraft.



This is not correct.


Trip

You don't factor in depreciation unless you depreciated it for tax purposes.

Mike
MU-2

"BTIZ" wrote in message
news:Wzydf.769$7A.758@fed1read04...
ok... I'm not a tax expert... but when you sell a car.. what taxes apply
to the seller..
is it a capital gains or loss.. if you intend to take a capital gain/loss
be sure to factor in depreciation

I can't ever imagine it being a gain, unless it's an antique bird that has
really appreciated in value..

the buyer pays all sales taxes..
BT

"George Patterson" wrote in message
news:BDxdf.1644$Pa4.1059@trndny01...
Ok, I know we have some tax experts out there. Tell me. When you sell an
aircraft, what taxes apply to the seller? Is this a capital gains/loss
situation? We're talking about an aircraft owned by and registered to a
private individual and used for pleasure.

George Patterson
Drink is the curse of the land. It makes you quarrel with your
neighbor.
It makes you shoot at your landlord. And it makes you miss him.

I don't know if aircraft are different, but with investment real estate
you have to factor in the depreciation if you were entitled to deduct
it, even if you didn't.


Mike Rapoport wrote:

You don't factor in depreciation unless you depreciated it for tax purposes.

Mike
MU-2

"BTIZ" wrote in message
news:Wzydf.769$7A.758@fed1read04...

ok... I'm not a tax expert... but when you sell a car.. what taxes apply
to the seller..
is it a capital gains or loss.. if you intend to take a capital gain/loss
be sure to factor in depreciation

I can't ever imagine it being a gain, unless it's an antique bird that has
really appreciated in value..

the buyer pays all sales taxes..
BT

"George Patterson" wrote in message
news:BDxdf.1644$Pa4.1059@trndny01...

Ok, I know we have some tax experts out there. Tell me. When you sell an
aircraft, what taxes apply to the seller? Is this a capital gains/loss
situation? We're talking about an aircraft owned by and registered to a
private individual and used for pleasure.

George Patterson
Drink is the curse of the land. It makes you quarrel with your
neighbor.
It makes you shoot at your landlord. And it makes you miss him.






--
"You can support the troops but not the president"
--Representative Tom Delay (R-TX), during the Kosovo war.

"xyzzy" wrote:
I don't know if aircraft are different, but with investment real
estate
you have to factor in the depreciation if you were entitled to
deduct
it, even if you didn't.


Only investment property held for production of income (e.g.,
rental) is depreciated. Else, depreciation is not allowable, nor
figured in when the property is sold. Ordinary people were doing
this in hot market areas -- "flipping" vacant residential real
estate, not even bothering with tenants.

Fred F.