Have a Tax Question? Ask a Tax Expert
Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.
Well, there's no problem with purchasing a Gyrocopter and using IRC 179 to expense it, carrying forward any part of the deduction that you can't use in the current reporting period.
However, initially you will have to establish legitimate business use based upon the facts and circumstances of your Contracting business. The key is whether or not is meets the standard of being "Ordinary and Necessary" in connection with your Contracting Business.
For example, if you routinely have to access locations that are otherwise unable to be accessed on a timely basis with traditional means, truck, public transportation, etc., then you could justify the deduction. Of course you would have to allocate the usage, based upon a log, between any personal & business use. Trying to get to an island job on a timely basis would be an example of justifying an "ordinary & necessary" expense.
Later on, where your business operation changes and you are going to operate an emergency transportation service from an island where you reside, that is much clearer in terms of it being an "ordinary & necessary" expense, presuming that you have all the required licenses, etc. to operated that type of business.
Just checking in.....................
I see that you have had a chance to review my comments..............
Do you have any follow-up questions that I can respond to for you?
If not, I would appreciate it if you would take a moment to rate my response (hopefully 5 stars) as that is the only way that I will receive my share of the payment you have already made to the site. Providing a rating will not result in any further charges.
Also, in the event that you are having problems with the rating system (it happens), you can just indicate a rating in words here & Customer Service will credit me with the rating.
Thanks very much for using JustAnswer.com