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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6167
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Hiii,, Question on my small buisness and I want to buy a

Customer Question

Hiii, My name is Doug,
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Question on my small buisness and I want to buy a Gyrocopter for travel and eventually use it in Phllippines for emergency transport of patients from small island I will be living on. First time for buying such a bigger item for buisness, Here in US it would be used for my travels to locations needed for my buisness. Buisness is Contractor that comes from Special Ops world of PSD.
JA: Is there anything else important you think the Accountant should know?
Customer: The Gyrocopter MTO-03 price is 60K
Submitted: 1 month ago.
Category: Tax
Expert:  Stephen G. replied 1 month ago.

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.

Customer: replied 1 month ago.
Ok thank you standing by.
Expert:  Stephen G. replied 1 month ago.

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.

Expert:  Stephen G. replied 1 month ago.

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.

Expert:  Stephen G. replied 1 month ago.

Questions?

Expert:  Stephen G. replied 1 month ago.

Just checking in.....................

I see that you have had a chance to review my comments..............

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Thanks very much for using JustAnswer.com

Steve G.

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