questions on business use of my personal aircraft

On 30 Apr 2004 15:39:24 -0700, (Bob) wrote:

For those of you using your plane for business...

Bob already gave the best advise...get a tax attorney.

1. What is the tax deductable rate for hourly use of aircraft (e.g.
for cars it is $.36 a mile I believe)?

I can tell you what they told me... 10 years ago, but get a tax
attorney. :-)) The rules and regulations change too often to go by
anything other than current.

"I was told" (remember it was 10 years ago) that I could deduct the
actual cost of the flight (UP TO the cost of a non discount, coach
class airfare between the closest airports to departure and
destination.


2. Is it better to own my aircraft personally (to prevent the
aircraft being owned by the company in the event of a lawsuit) and
then have the business (LLC) "rent" from me personally for a certain

Do you want them to take every thing in the company or every thing you
own?

amount? How much is this "rent" and is it based on actual costs or
future costs (overhaul, etc)? Taxwise I will have to declare the rent
as income if it is more than my operating costs, right? But the

In this case (remember my information is 10 years old) you would have
to declare it all and then deduct the operating costs.

business gets to claim it as an expense, right? But how to convince
the IRS of the actual and future costs of aircraft ownership?

Under some circumstances you can claim the aircraft as part of the
business and expense it. In addition you can claim the operating costs
(up to that coach class fare...per passenger), but not over the actual
operating cost..

OTOH if you do expense the aircraft and it is completely written off
over so many years, when you sell it ALL of the selling prices in
classed as income.

3. Any good books, publications, or literature you can point me to
that address this specific subject?

4. I'm fairly new to owning my own business (LLC- I've had a very
small sole proprietorship in the past). Can any of you recommend good
info to read up on that is specific to LLCs particularily in the area
of sheltering personal property and how to get the most out of the LLC
tax wise?

Get a good tax attorney or public accountant.


5. What are your experiences with using the aircraft for business
(cost wise) and has it penciled out for you?

6. One last question since you've been so darn good to hang in there
this long ... top three tips for a new small business owner?

Take a sanity check
If you fail that Get a tax attorney
Run the business, don't let it run you.

Thanks a bunch folks!

Good Luck

Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com
Bob