business ownership

[rturbett]

Can anyone offer advice on any tax advantages of having a mooney registered through  a business versus as an individual?

What specific tax advantages sre there?

Any insurance difference?

anticipated business use will be about 5% at first, but growing  once the IFR is finished.

Thanks,

Rob

[mooneygirl]

Hi Rob

Probably the best thing that we can recommend is getting the AOPA legal part of your AOPA membership if you don't already have it.  The consultations are unlimited for the purchase of an airplane.

We did purchase the Ovation for my business. Every state is very different.  I would recommend lots of research, and the AOPA legal.

All the best

Jolie

[Earl]

Quote: rturbett

Can anyone offer advice on any tax advantages of having a mooney registered through  a business versus as an individual?

What specific tax advantages sre there?

Any insurance difference?

anticipated business use will be about 5% at first, but growing  once the IFR is finished.

Thanks,

Rob

[KSMooniac]

I'd start with AOPA first (join the legal plan) and then consult a local attorney familiar with the subject IN YOUR STATE.  Every state is different, and some states (like CA, maybe NY) have some non-trivial fees for the corporation that might wipe out other advantages. 

I consulted with an aviation attorney here before purchasing and had lots of questions concerning occassional business use, letting other pilots use it, etc. and in my case, he said putting it in a business of any sort was just a waste of effort, so just own it as personal property and carry as much insurance as possible.  I absolutely abhor bookeeping too, so that is another reason for me to just have it as my own personal property and not track expenses to every last detail...   (in case you haven't learned yet, under no circumstances are you to ever add up all of the costs of ownership!!!)

[jlunseth]

If you are piloting the aircraft, or if you authorized someone else to pilot the aircraft, when an accident occurs, what good is it going to do you from a liability insulation standpoint to have put the aircraft in an LLC or similar?  They are going to come after you on some theory of liability. 

[GeorgePerry]

Before purchasing my Mooney I sat down with a very reputable Aircraft attorney and asked the same questions.  First he told me that using an LLC as a shield for liability is a fallacy.  If the owner’s at the control and something bad happens, it doesn’t matter if the bird is registered under an LLC…A good lawyer will rip that façade to shreds.

 

Second he said the “best” protection you can get is insurance.  If your covered, your covered…He said not to pinch pennies and get ample liability coverage.  That’s the best thing a owner/pilot can do.

 

As for business tax advantages, advocate tax is the best in the business when it comes to consulting for aircraft use as it relates to business use and tax laws.

 

[fantom]

Given the current pressures on revenue increases in Washington, do ya think that just maybe you rich airplane owners might get a second or third IRS look and possible audit?

At 5% or 25% business use, IMHO, the advantage is negative....there be drageons there, sorta like a home office, only worse.

 

[Parker_Woodruff]

Get insurance.  Consult with an accountant about how you can deduct the expenses for business use.  Can you figure an hourly operating cost, etc.?

 

For me,  I have to do everything through a business.  I have an exclusive rental agreement with a prominent aviation rep  in the region and he flies it a lot.

[Earl]

Quote: GeorgePerry

Before purchasing my Mooney I sat down with a very reputable Aircraft attorney and asked the same questions.  First he told me that using an LLC as a shield for liability is a fallacy.  If the owner’s at the control and something bad happens, it doesn’t matter if the bird is registered under an LLC…A good lawyer will rip that façade to shreds.

[Earl]

Quote: fantom

Given the current pressures on revenue increases in Washington, do ya think that just maybe you rich airplane owners might get a second or third IRS look and possible audit?

At 5% or 25% business use, IMHO, the advantage is negative....there be drageons there, sorta like a home office, only worse.