milotron Posted March 24, 2019 Report Share Posted March 24, 2019 Hi, I use my aircraft for a lot of work related trip instead of driving or taking commercial. We live on an island so there is an inherent advantage to this. Most commercial flights transfer in Vancouver before going to the final destination always adding stopover time, so Mooney time door to door is almost always quicker. My plane is owned by a hold-co that I own. I have been inconsistent in terms of charging it's use back to the main corporation and need to get this sorted. I have charged mileage, commercial-equivalent, etc depending on what the account will tolerate. Time-wise, there is always a savings of my time. For those who do this, what do you charge for hourly a/c rates? I have seen them all over the map. My current op-ex with engine/prop funds is about $254CDN or $181 USD, $205CDN / $146USD without funds. Using a mileage based approach at $0.55 per km it is $163CDN / $116USD per hour. Thanks for the input. Quote Link to comment Share on other sites More sharing options...
carusoam Posted March 24, 2019 Report Share Posted March 24, 2019 First... Look what Canada allows... Second.... there is a US IRS allowable rate that is published... just like auto miles, airplane miles are a few cents per mile higher... I haven’t checked in years... This might get you close to an answer... https://www.ifebp.org/news/regulatoryupdates/Pages/2018-irs-mileage-rates.aspx Google maps is pretty good at defining the miles that people expect you to drive between locations... ForeFlight is pretty good at defining theoretical miles you might fly... CloudAhoy can probably collect the data of how many miles you actually flew... All depends on the accuracy you want or other people expect to see... Best regards, -a- Quote Link to comment Share on other sites More sharing options...
M20F Posted March 24, 2019 Report Share Posted March 24, 2019 2 minutes ago, carusoam said: Second.... there is a US IRS allowable rate that is published... just like auto miles, airplane miles are a few cents per mile higher... And you will need spotless records both sides. I just take the auto reimbursement in the US from work which covers gas and a few extra $$’s. Eliminates basically any worries around and audit. For Canada obviously something different. Quote Link to comment Share on other sites More sharing options...
milotron Posted March 24, 2019 Author Report Share Posted March 24, 2019 @carusoam I haven't heard of a different a/c mileage rate. I will need to look into this for Canada. 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted March 24, 2019 Report Share Posted March 24, 2019 I’m in the fortunate position of having one personal airplane and one business airplane. You should be able to take the entire expense for ownership for the year, divide this by the number of hours flown for an hourly rate. Your journey log tracks personal versus business flying, multiply the usage hours for each and pay the holding company accordingly. Clarence Quote Link to comment Share on other sites More sharing options...
milotron Posted March 24, 2019 Author Report Share Posted March 24, 2019 Thanks Clarence. I think my accountant had been doing this. I was also considering a different approach to invoicing the main corporation and then disbursements to the client. I can explain away mileage pretty easily but it sometimes doesn't cover costs ( but we have less hours invoiced due to more efficient scheduling ) and an invoice for $2xx per hour of air time from an aviation corp might not be accepted if unrealistic. I suppose that is two different issues. Fortunately the vast majority of my hours are business flying or currency and therefore all legit corp costs. Actual pleasure flying has been fairly low, which isn't to say the other hours aren't enjoyable... Quote Link to comment Share on other sites More sharing options...
Yetti Posted March 25, 2019 Report Share Posted March 25, 2019 The USA GSA has a published reimbursement rate that the IRS should accept. Not real sure what would please the crown. https://www.gsa.gov/travel/plan-book/transportation-airfare-rates-pov-rates/privately-owned-vehicle-pov-mileage-reimbursement-rates 1 Quote Link to comment Share on other sites More sharing options...
Danb Posted March 25, 2019 Report Share Posted March 25, 2019 Using the government trans rate works for businesses travel but can’t be used for charity work, the depreciation factor would need be taken out of the rate. Therefore for angel flight or pilot and paws use the rate adjustment for charity work. Also consider utilizing the actual cost of flying compare to the govt rate and use the higher amount 1 Quote Link to comment Share on other sites More sharing options...
thinwing Posted March 25, 2019 Report Share Posted March 25, 2019 (edited) That mileage rate is pretty close...a 190 nm/hr longbody would run about 275 hr. Edited March 25, 2019 by thinwing Quote Link to comment Share on other sites More sharing options...
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