Aircraft tax question

I said "Personal losses" not "capital losses". They are quite different.

What you count at work as capital to be depreciated verses expensed isn't
necessarily what the IRS allows. But I don't know what business you are in.


Trip


In article , says...

TripFarmer wrote:
But personal losses aren't deductible, right? )

Last I knew, capital losses could be deducted up to $3000/year and the
excess loss could be carried forward a number of years. I haven't
checked this lately as I haven't had the need, but I haven't heard of
this being changed.


So, if your neighbor needs a hoe and you have one you bought at a garage
sale for $1.00 and he gives you $5.00 for it do you report a $4.00 gain on
the sale?

Again, I'm not sure, but I believe there are tests as to what is a
capital asset and what isn't. At work, we only have to count things as
capital assets if they have a value of $3000 or more and a useful life
of greater than 1 year. A hoe should last more than a year, but
wouldn't meet the dollar test. I'm not sure if similar rules apply for
"personal" assets, but I suspect something similar applies.

Matt

George Patterson wrote:
Matt Whiting wrote:

Last I knew, capital losses could be deducted up to $3000/year and the
excess loss could be carried forward a number of years. I haven't
checked this lately as I haven't had the need, but I haven't heard of
this being changed.


That meets with what happened when I sold my last house. So. Does the
purchase and later sale of an aircraft fall in the capital gains/loss
category?

I believe it does based on my reading of the IRS rules, but I'm not a
tax accountant or attorney, so you'll want to check with a pro to be sure.

Matt

TripFarmer wrote:

I said "Personal losses" not "capital losses". They are quite different.

I haven't heard of personal losses as a tax concept. Can you elaborate?

Matt

Last I knew, capital losses could be deducted up to $3000/year and the
excess loss could be carried forward a number of years. I haven't
checked this lately as I haven't had the need, but I haven't heard of
this being changed.

That meets with what happened when I sold my last house. So. Does the
purchase and later sale of an aircraft fall in the capital gains/loss
category?

If you perform an annual and your mechanic tells you you need $xxxx
worth of repairs, can you write that off as a capital loss until you
make the necessary improvements?

"john smith" wrote:
Last I knew, capital losses could be deducted up to $3000/year

That meets with what happened when I sold my last house. So. Does
the
purchase and later sale of an aircraft fall in the capital
gains/loss
category?

If you perform an annual and your mechanic tells you you need $xxxx
worth of repairs, can you write that off as a capital loss until you
make the necessary improvements?

Whether a personal residence, or aircraft for personal use, no losses
(except for casualty loss) are ever allowed.

Fred F.

TaxSrv wrote:

Whether a personal residence, or aircraft for personal use, no losses
(except for casualty loss) are ever allowed.

For whatever reason, I got a $3,000 capital loss deduction when I sold that
house. I don't remember what tax package I used that year.

George Patterson
Coffee is only a way of stealing time that should by rights belong to
your slightly older self.

On Sat, 03 Dec 2005 02:46:13 GMT, George Patterson
wrote:

TaxSrv wrote:

Whether a personal residence, or aircraft for personal use, no losses
(except for casualty loss) are ever allowed.

For whatever reason, I got a $3,000 capital loss deduction when I sold that
house. I don't remember what tax package I used that year.


There is no question that capital losses on personal property used for
personal purposes are not deductible.

Was the house used solely as a personal residence?

If not, I will guess that either the s/w was wrong or the user made a data
entry error. Perhaps GIGO at work?


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)

Ron Rosenfeld wrote:

Was the house used solely as a personal residence?

Yes. The only thing I can think of is that we had moved the year before. I had
some renovation work to complete on the old place, so I didn't sell it for about
9 months. No one was living there, so, when the tax package asked if it was our
primary residence, I answered "no."

George Patterson
Coffee is only a way of stealing time that should by rights belong to
your slightly older self.

"George Patterson" wrote:
Was the house used solely as a personal residence?

Yes. The only thing I can think of is that we had
moved the year before. I had some renovation work
to complete on the old place, so I didn't sell it for
about 9 months. No one was living there, so, when
the tax package asked if it was our primary residence,
I answered "no."


You probably forced the software to consider it investment property,
which it wasn't. We can in provable circumstances hang onto a former
home as investment property, but 9 months of just fixing up for sale
won't make it such property in IRS eyes, no way.

Fred F.

On Sat, 03 Dec 2005 17:00:42 GMT, George Patterson
wrote:

Ron Rosenfeld wrote:

Was the house used solely as a personal residence?

Yes. The only thing I can think of is that we had moved the year before. I had
some renovation work to complete on the old place, so I didn't sell it for about
9 months. No one was living there, so, when the tax package asked if it was our
primary residence, I answered "no."

George Patterson
Coffee is only a way of stealing time that should by rights belong to
your slightly older self.

Maybe, based on your answer and its internal logic, the s/w thought your
residence was investment property. I doubt it would qualify as such, given
the facts you've related.


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)