sales spike

In reply to:


Goes to show how important it is to consult with a pro.


And I think you all should do just that and not write off the writeoff so quickly. Contact Lou Meiners at Advocate Consulting, as aircraft taxation is their specialty. There was a new ruling that just came out that backs up the deductability of aircraft use, including personal use, if properly structured. I have been very satisfied with them. They will work with your CPA.

The deduction: is it too good to be true? After talking with a few experts I want to go for it. I am about to buy a new SR22 with a business partner who is also a CPA, and we been vigorously researching this deduction. Lou Meiners at Advocate consulting has been highly recommended by Cirrus and so has Victor Anvick and at ATIS consulting (http://www.atisgroup.com/). My partner and I are meeting with Vic next week to see if it is possible to create a strategy to take advantage of the deduction. You definitely have to cross your "i"s and dot your "t"s to pass muster with the IRS but it can be done. For me the deduction practically offsets the entire down payment on the aircraft so it is very attractive. You are right, it is very difficult to defend the deduction if you are a single pilot owner operating the aircraft for your own use. But if you lease the aircraft out to a club and others fly it for a fee (among other qualifications) you can justify the deduction. I’ll let you know how my meeting goes with ATIS next week.

i dont think the deduction is the hard part based on my research. the underlining question circles back to insurance… if you justify tax based on business your personal insurance voids (and i havent found a personal quote which hasnt spefically excluded all but personal use). i’ll be very interested in your findings. good luck

Check with a good aviation accountant, leasing may be considered a passive activity and you will not be able to use the deduction against those earnings.

Charlie Cope

Good point re insaurance for personal vs commercial use. Also note, if leased, this plane will be subject to the stricter FAA rules for leased aircraft, eg, 100 hour inspections, etc.

Yeah, well at least cars and trucks depreciate, so it makes a little more sense. Assuming, of course, you’re into driving a Jeep with a pituitary case