>From: "Max Hardberger" <[email protected]> . However, plane owners, like boat and RV owners, >should remember that, due to past abuses, the IRS will carefully scrutinize >any business deduction involving a recreational vehicle.
See I told you guys you didn't want to be subjected to this discussion. What many on the outside view as an argument, we view as points of discussion:-) As a point of emphasis on the IRS use of aircraft, their determination of deductable business use has tightened considerable lately. Case in point, Dr. who does eye surgury consulting and surgury assistance has recently had a substantial portion of his airplace expense deduction ruled non deductable. The expenses are normal airplane expenses. The IRS position is the airplane was a luxury and not a required business expense. His argument is most of the places he flies too do not offer commercial airports. The IRS's stance is unless you can prove the flight allowed you to generate income in proportion to prior income percentages/non aviation expenses, the flight was a convenience and thus not required. In incorporation of this stance, the service is only allowing what a commercial flight plus transportation would have been for each trip. Furthur more, the percentage disallowed has been transfered to the shareholder as dividend income....which is non deductable to the corporation. This is going to an interesting one for those of us who practice. The IRS requires an airplane to be a listed asset, so big brother is watching. All I saying is be careful if you choose to go this route, there are potholes to be avoided. Man, I'm sure you guys wish this one had never got started:-) Back to your original programming. Dana Overall 1999 & 2000 National KR Gathering host Richmond, KY RV-7 slider/fuselage Finish kit ordered!! Buying Instruments http://rvflying.tripod.com do not archive _________________________________________________________________ Add photos to your messages with MSN 8. Get 2 months FREE*. http://join.msn.com/?page=features/featuredemail
