Hi, all --
Jon wrote:I wish I had the answer. I will reluctantly suggest you contact the AOPA legal counsel or the IRS and outline the circumstances.
I second that, naturally. I have, however, recently spoken with my accountant, and he had these suggestions:
- All direct expenses should be deductible. That's gas and landing fees plus anything else that is a specific part of a trip; easy enough.
- If I buy some piece of gear to enable me to do PnP flights, it's probably deductible as well. We're going to look closely at this, since we hope to add some basic equipment that will facilitate the XC travel needed for transports and at the very least have had to get some out-of-town charts.
- Oil changes very well may be deductible since they're directly related to hours flown. We didn't discuss a 100-hr inspection 'cuz I don't do that.
- If I were to set up a depreciation schedule for the plane, then it's quite possible that we might be able to deduct a proportional percentage of non-flying-hours-related costs like tiedown/hangar and annual inspections. I doubt we'll be going this far, but we might; we'll see how things look in six months.
IANAL and IANAA and so on, and there is no single answer for all, but these may be good points to bring up with your own advisor. I'll try to remember to follow up later this year and -- more importantly -- after the details are worked out next April :-)
HTH & HAND