You know theses pictures I posted with the above reply? The pilot was killed in that plane over the weekend.
Very nice obit here... Kathryn's Report: BR LEGEND LLC Turbine Legend, N42BR: Fatal accident occurred May 23, 2015 near Columbia Metropolitan Airport (KCAE), Columbia, South Carolina
Not sure about this, but the Tucano, with dual ejection seats, turbine powered, etc is likely way costlier than I can handle. Not a terribly pretty plane either.
The Extra 330LT can be fit with a full IFR panel and can be equipped with an auto pilot. It sounds like Extra built the aircraft for people seeking the same type of airplane you are, and it is decently fast. Looks like it's as close as you can get to the Viper without breaking the bank. Let us know what you decide on!
Agreed! I have an accountant looking at the tax strategy for a possible 2016 aquisition. Having never owned an airplane, other than perhaps a one billionth share in the F-16 I flew, I'm still a bit nervous about it. I want to be sure I can see the costs as much as possible up front.
I happen to currently own a Baron B55, Turbine Legend, Christen Eagle and Cessna Cardinal FG. Before I retired, the Baron was always my tool of choice for what sounds like a similar mission. Usually 100-250 mile one way trips (there and back in a day), by myself. I'm in the midwest (you're in the SW?). In regards to my typical missions: Baron: pros - comfortable, stable IFR platform, plenty of room. Cons: maintenance and $$ hog. Cessna: - pros - easy to fly, simple. cons - slow! Turbine: pros - FAST, close to no mainteance (truly put fuel in, check the oil and go). Cons - uses a LOT of gas. A pain to get in and out of, getting luggage (briefcase) in and out is not easy. Not a good, stable IFR platform Eagle: LOL....not good for anything but aerobatics. Never, ever took it for a business trip. I would arrive with ears ringing and beaten to hell. Its basically impossible to find an aircraft that will fit all your missions. For me personally (and having flown an extra 300) I would it a little noisy and not stable enough on the longer trips. So...depends on what you want and what you want to give up! I'd be more than happy to chat to you about AC ownership and the tax strategies I used and continue to employ despite now being "retired" for the last year (but I still own the planes Marc
There's not much for an accountant to do. If you have a profitable business to write off expenses against then it's viewed no differently than a forklift. Depreciate the airplane and write off the expenses. If you're paying for it with personal dollars then you're just paying for it with personal dollars.
Well almost. The bonus (accelerated) depreciation is still available for new aircraft purchases. See: https://www.nbaa.org/admin/taxes/depreciation/bonus/20151218-extension-of-50-percent-bonus-depreciation.php Depending on how long he might own the A/C this is probably worth discussing. he may have other tax/business/income/expense issues that may or may not play into the decision to use this "bonus". In addition, most likely there will be a mix of personal and business use, and how his CPA wants him to track/record this (or not as the case may be ) all needs discussed and planned for then executed.
Be prepared for an audit, though. The IRS views aircraft deductions as a red flag. Now, I'm not saying that there is anything wrong or illegitimate about those deductions, or that you shouldn't take them-- they're perfectly fine, and the IRS will back down if your documentation is good and your position is reasonable. But make sure your documentation is good BEFORE you get audited, because there is a pretty good chance you will.
Bonus depreciation still only works if you have a profitable business to buy the plane with. If you have a profitable business then what good is the "bonus" part? Don't you need the depreciation for the following year also? Either way, none of this is something you need to pay an accountant to figure out for you. It's boiler plate.
I've owned airplanes for the last 10 years. I got my first audit this year but it had nothing to do with airplane ownership. Yes, your documentation needs to be in order but if you're part 91 there's not much to it. If you're part 135 then you're making money in the aircraft game and you will need a lot more documentation.
This is exactly what my accountant and I are figuring out now. Buying new versus pre-owned, how often to swap planes, etc, all matter. Maybe for some it is boiler plate, but as an F-16 pilot, surgeon, and consultant, I long ago ran out of brain cells to handle tax planning too...it's way cheaper for me to speed dial a pro than for me to spend time reading about it and still possibly arrive at a bad plan. Small plan changes can mean hundreds of thousands of dollars in tax liability changes and I'm smart enough to know what I don't know. Plane will be 100% business travel and currency flights without passengers at any time. Statistically, audits occur when any degree of mixed use is introduced, and I'd like to stay on the low risk side of the equation. And if audited, I want a bullet proof and legally-tested plan with my only job being paying for x, y, and z and writing down a, b, and c for every flight.
The airplane market plays just as much a role in your financial planning. Unless your accountant is an expert in that also I would only put 50% of my faith in his corner. Some planes take a major dump right off the showroom floor. Some do not. Some planes bought used have a chance of selling for more than you paid for them. My plane is 100% business. But I fly it myself. So I'm Part 91. If you're paying a pilot you could be under Part 135. What does "currency flights without passengers" mean? A turbine anything will have a recurrent training requirement per insurance and all that is done in a sim.
A currency flight means not a flight to get me from point A to point B and which is flown to practice an event required to remain current in the aircraft, such that an instructor might be present, but no passenger along for the ride. So not a business event but a required flight nonetheless. I guess even though I have a commercial MEL/SEL with instrument privileges and over 3500 of jet time, there's a lot I don't know. Can't imagine buying any plane that would require me to get in a simulator to stay current...that's just ridiculous, sorry. And I'm sure as hell not hiring a pilot.
Make sure that flight is required by regulation or insurance, if you're planning on arguing to the IRS that it is "business use." Personally, if I do a proficiency flight (night landings, for instance), I always count it as "personal use" for tax purposes. Actual recurrent training with an instructor on board and resulting in a documented sign off is business use.
If you have Commercial MEL/IFR and 3500 jet time then you've spent lots of time in a sim. Everyone goes every year for recurrent training per insurance. There's no way around it. Instrument privileges? I've never heard this term before. Is the last time you flew before the advent of simulators?
