I am fairly new at this, I have done 2 flights to date and hope to do many more. I have been researching cost calculation for tax purposes and am a bit confused.
I have a good handle on the variable cost (as this is what the IRS allows) per hour to operate my plane - fuel, oil plus ramp fees, etc. And I had planned to base my deductions on this hourly cost plus incidentals. In all my calculations on variable costs per hour I have used clock hours, as if using hobbs time, the same way I log my flight time. I had planned to use this clock hour calculation for tax purposes. What confuses me are the fields on the PnP flight form:
STARTING TACH TIME_____________ENDING TACH TIME_______________HOURS________
as if tach hours are supposed to be used in the cost/hr calculation.
Should I be using tach hours for variable cost calculations instead?
Should I change the form to "hobbs start/end" to suit my calculations?
Should I find the conversion for hobbs to tach on my plane?
Should I just use straight expenses for the flight, for example cost to fill up during/after the trip?
Does it matter as long my tax accountant (my wife) understands the method used and we document it?
Am I over-thinking it?
How do others handle this?