Jump to content

Appraisal Recommendation Needed


Recommended Posts

I am planning to take my Mooney Ovation out of my company business name and personally own it.    There are negative tax consequences in doing this that both I and the company will have to pay.   It pisses me off that I have to pay significant taxes on an aircraft I already own but that's another matter.    I had my Mooney appraised by a AOPA recommended appraiser and the appraised value came in much higher than I had anticipated.    I am planning on getting a second appraisal and hope it comes in lower.   I am looking for recommendations for names of appraisers.   

Thanks.

Norm

Link to comment
Share on other sites

Call Jimmy Garrison at GMAXAmerican and ask him for an offer on your aircraft. Jimmy knows this game like nobody else, has sold more used Mooneys in the last 25 years than anybody else

  • Like 1
Link to comment
Share on other sites

17 hours ago, Fritz1 said:

Call Jimmy Garrison at GMAXAmerican and ask him for an offer on your aircraft. Jimmy knows this game like nobody else, has sold more used Mooneys in the last 25 years than anybody else

That alone wouldn't satisfy IRS requirements.

 

Link to comment
Share on other sites

1 hour ago, Little Dipper said:

That alone wouldn't satisfy IRS requirements.

 

The idea is that you take Jimmy's written offer to the next appraiser as a 'reference document'...you said 'you hope it comes in lower'. This will improve your odds!

Link to comment
Share on other sites

21 hours ago, Little Dipper said:

I am planning to take my Mooney Ovation out of my company business name and personally own it.    There are negative tax consequences in doing this that both I and the company will have to pay.   It pisses me off that I have to pay significant taxes on an aircraft I already own but that's another matter.    I had my Mooney appraised by a AOPA recommended appraiser and the appraised value came in much higher than I had anticipated.    I am planning on getting a second appraisal and hope it comes in lower.   I am looking for recommendations for names of appraisers.   

Thanks.

Norm

I think its only worth a $1.00

Edited by tony
  • Haha 2
Link to comment
Share on other sites

LD, this may have different results than first meets the eye, converting business to personal use,versus selling the asset etc., I’m not providing tax advice but recommending getting an airplane attorney, there’s many out there and a CPA that handles business and personal use airplanes. It’s entirely possible it won’t be as bad, depends on type of entity depreciation methods past personal use therefore I’d consider getting good representation. The IRS has started auditing companies with aircraft especially personal use. Good luck, I believe the IRS already has made almost a billion in tax audits of business airplanes. Currently training many agents for this purpose alone. As they get proficient all hell will hit the fan.

D

Link to comment
Share on other sites

23 hours ago, Little Dipper said:

I had my Mooney appraised by a AOPA recommended appraiser and the appraised value came in much higher than I had anticipated. 

Is there a list on AOPA somewhere?  So far I haven't found one.  I may need an appraisal to make sure I don't get gouged by the WA State Use Tax.  

Just because the plane was purchased and originally kept in non tax states, I've been told WA is probably going to go for the full sales tax equivalent (their Use Tax) of what the going market is, not even what I paid for the plane over 30 years ago.  So I'm also hoping an appraisal will reduce the pain.

Link to comment
Share on other sites

22 hours ago, MikeOH said:

The idea is that you take Jimmy's written offer to the next appraiser as a 'reference document'...you said 'you hope it comes in lower'. This will improve your odds!

Thanks.   

 

18 hours ago, PeteMc said:

Is there a list on AOPA somewhere?  So far I haven't found one.  I may need an appraisal to make sure I don't get gouged by the WA State Use Tax.  

Just because the plane was purchased and originally kept in non tax states, I've been told WA is probably going to go for the full sales tax equivalent (their Use Tax) of what the going market is, not even what I paid for the plane over 30 years ago.  So I'm also hoping an appraisal will reduce the pain.

I got the appraisers name from the AOPA's legal department.    The issue is the Ovation is fully depreciated which means my company will have to pay capitol gains tax 20% on the appraised value.   The appraised value would also be charged to me personally as income or dividend income and I would also be responsible for Pennsylvania's six percent sales tax.   The bottom line is I end up paying 46+% of the appraised value of my own Ovation just to transfer the ownership from own company to myself personally.    

   

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.