I’m looking for advice form the tax perspective. Any CPAs around?
I’m looking to buy an SR20 and start a flight school where I can employ my retired father who is an ATP/CFI
I’m a high W2 earner and I’m trying to take advantage of some tax benefits while able to help my father a bit and get some tax and flying benefits.
Any CPA’s with experience on LLCs/S-Corps bonus depreciation, loans or SBLOC (stocked backed loans) and other options to purchase an airplane?
Just needs to pass the hobby loss rule. You have to prove x amount of time being dedicated and involved in the business. I’m no longer a practicing CPA, but I did stay at a Holliday inn last night. There’s several professional advisors on here that can provide you far better advice!
Welcome to COPA!
Would recommend having a convo with ATC. This is their wheelhouse and can filter through/reconcile the goal/aspiration of what you’re solving for against the legitimacy of the structure.
I’ve used them since the beginning and I know there are a number of others here that have used them as well. I’m a biz owner so there’s a different structure of what I have set up compared to what you’re solving for, but ATC can give you some thoughts on next best steps.
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With few exceptions, you can forget about offsetting W-2 income with aircraft losses or depreciation. Depreciation is a business deduction and won’t help you if you are working for someone else.
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Like Adam, I would consider ATC. I have also used Scott Williams, and while more of a legal expert he has a wide range of knowledge ……so give him a try too.
Both are excellent experts.
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Paging @Asgcpa
ATC
KJ McCarter
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I use https://www.businessaviationlawgroup.com/
They will provide free consultation and if you go ahead they will cover all your needs for a flat fee.
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+1 on this.