How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark Anderson Your Own Question
Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 541
Experience:  Tax attorney and accountant
17793914
Type Your Tax Question Here...
Mark Anderson is online now
A new question is answered every 9 seconds

I recently purchased a single engine Cessna that I intend to

Customer Question

I recently purchased a single engine Cessna that I intend to use for getting to my consulting clients. I am looking for an expert in General Aviation tax, both Sales tax and Income tax write-offs of General Aviation costs.
Submitted: 1 year ago.
Category: Tax
Expert:  Jason M. Tyra, CPA replied 1 year ago.

Hi Hans:

You can write off your ordinary and necessary business expenses under Section 162 of the Internal Revenue Code. However, the use of a private plane is considered ordinary and necessary only under certain circumstances. Generally speaking, the IRS has allowed the expenses only in cases where commercial flights are unavailable or inconvenient to meet legitimate business needs. For example, if you or your consulting clients are in the Alaskan back country, a private plane would make sense. If both are located in areas with regular access to commercial flights, you might face a challenge from the IRS to prove that the plane was necessary for your business.

Customer: replied 1 year ago.

Hi Jason, are you an expert on GA tax?

Expert:  Jason M. Tyra, CPA replied 1 year ago.
I am a tax accountant. JustAnswer doesn't have an aviation related tax subcategory. Your issue may be a little too specialized to get an answer here, but I would be glad to try to answer it. Or, if you prefer, I can opt out to give someone else a chance.
Customer: replied 1 year ago.

There are such experts in the market, I since found some. I feel I specifically asked for that and while I do not want to be cheap, you are not really able to help, right?

Expert:  Jason M. Tyra, CPA replied 1 year ago.

You haven't really asked a question yet to give me the opportunity to help you, even though I tried to anticipate what you were looking for by providing an answer. I will send you back to the queue to give someone else an opportunity to make you believe you are getting your money's worth.

Expert:  Mark Anderson replied 1 year ago.

You should document the necessary and ordinary business expenses. You should show that it is both necessary and ordinary in your line of business. You could also license the plane in a state with no sales tax like using a Montana LLC. I hope this answers your question. If not, then please reply. Thank you.

Customer: replied 1 year ago.

Now I have two people responding? Did not know that was possible and not sure who gets paid if my questions are answered.

On sales/use tax, I would like to know what the prerequisites and preconditions are to not have to pay use/sales tax.

Expert:  Mark Anderson replied 1 year ago.

https://www.49dollarmontanaregisteredagent.com/montana-registration/aircraft

Customer: replied 1 year ago.

There are very specific requirements around being able to get exemption from sales/use tax in California (I know this from the Aviation community). I know that just registering in another state dos not do it. I am starting to think that "Justanswer" is not the right forum for such in-depth questions about aviation-related tax although I have had great success in the past with Justanswer.

Expert:  Mark Anderson replied 1 year ago.

You just don't register. You set up a MT LLC to take title and register the plane.

Customer: replied 1 year ago.

That is not an option. In fact, it is fraud. Googling it will tell anybody that in a second. Under the right conditions I can legally be exempted. I am asking for those conditions.

Expert:  Mark Anderson replied 1 year ago.

Try this company:

http://www.advocatetax.com/1299/controlling-aircraft-sales-tax-on-purchases-2/

Related Tax Questions