Documented Operating Cost

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Documented Operating Cost

Postby Zx6rrider on Thu Nov 29, 2012 3:09 pm

Is there a website that shows the operating cost of different planes? I'm doing my first flight today in a 150 I own and don't really have a documented hourly cost. Ill keep my fuel receipts, landing fees, ect but is there something that calculates in the oil/depreciation/maintenance cost for figuring out the deduction amount? Thanks
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Re: Documented Operating Cost

Postby dennismckim on Fri Nov 30, 2012 2:47 am

I don't know of a website that provides such information for multiple aircraft, but here is an example of how one manufacturer calculates Direct Operating Cost for one of their aircraft:
Page 11 at http://www.pilatus-aircraft.com/00-def/ ... 0Facts.pdf
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Re: Documented Operating Cost

Postby Zx6rrider on Sun Dec 02, 2012 11:52 pm

Thanks, I'll try and make something up like that for my plane. I guess since its not a huge amount that will be deducted, It will probably never get looked at. Worst case Ill just deduct the fuel cost, no arguing that with the receipts
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Re: Documented Operating Cost

Postby Steve Foley on Mon Dec 03, 2012 3:05 am

See this thread for more information:

viewtopic.php?f=9&t=11556&p=52773#p52773

Generally, you can only deduct out of pocket expenses such as fuel, oil, parking fees, landing fees. I'm pretty sure you cannot deduct depreciation, maintenance, engine reserves, etc.
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steve dot foley at gmail dot com
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Re: Documented Operating Cost

Postby Zx6rrider on Wed Dec 05, 2012 4:09 pm

Thanks, guess that makes it easier anyways
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Re: Documented Operating Cost

Postby ChuckH on Tue Mar 19, 2013 11:01 pm

Steve Foley wrote:See this thread for more information:

viewtopic.php?f=9&t=11556&p=52773#p52773

Generally, you can only deduct out of pocket expenses such as fuel, oil, parking fees, landing fees. I'm pretty sure you cannot deduct depreciation, maintenance, engine reserves, etc.


After speaking with my CPA, maintenance costs can not be deducted. However, any direct operating costs can. This includes the dead-head legs as well as the actual transport legs. Additionally, any meals and ground transportation (gas for the crew car) incurred during the trip can also be deducted.

The direct operating costs include fuel and oil (of course), and engine reserves. The engine reserves can be calculated by dividing the cost of an overhaul by the TBO. In my case, I'm spinning two engines at $31k/overhaul each with a TBO of 1800 hours, which comes out to $34.44/hour. I burn 25 gph at cruise at an average cost of about $6.50/gal, which comes out to $162/hour. Being the maintenance-conscience owner that I am, I change the oil every 75 hours at a cost of about $300. There's another $4/hour. There's also prop overhauls which are based on time in service. At $7k each and a 2000 hour TBO, that's $7/hour

  • Fuel: $162/hour
  • Oil: $4/hour
  • Engines: $34.44/hour
  • Props: $7/hour
Total: $207.44/hour

So far, the direct cost of operation is about $207/hour. While these figures are for a light twin, the point is to document the direct operating costs. Meals and ground transportation can be added to this, but it needs to be itemized separately. I would also make sure that each item chalked up under "Charitable Contributions" note the tax ID number of the 501(c)3 organization.

See also http://aircareall.org/tax.htm

Enjoy,
- Chuck
Commercial AMEL, ASEL, ASES, Inst
PA-34, PA-28, C-152, L16
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Re: Documented Operating Cost

Postby Steve Foley on Wed Mar 20, 2013 10:11 am

The direct operating costs include fuel and oil (of course), and engine reserves.


I've never seen any authority claiming engine reserves (or prop reserves) are a direct operating cost. The article you referenced did not.
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