Flying is expensive enough without giving more than your share of hard-earned dollars to Uncle Sam. Pilots are reminded to consider all their basic business expenses, training deductions and sales and use taxes. Commercial operators (more than 50-percent business use) can look into the new “bonus” depreciation option for new aircraft and aircraft equipment purchased in 2002. New depreciation rates for new business aircraft or major upgrades to used aircraft have also been introduced. Out-of-state pilots can also get refunds on fuel taxes paid in Delaware, Maine, Indiana and New Jersey. AOPA is reminding pilots and aircraft owners to take a little time to research the tax benefits of their passion. “AOPA gladly provides its members with a better understanding of taxation anytime of the year, especially before April 15,” said senior technical specialist Rodney Martz. The Pilot’s Guide to Taxes is also available to members.
The Taxman Cometh … Some Things You Should Know
Key Takeaways:
- Pilots are advised to research and utilize various tax benefits, including deductions for business expenses, training, and sales and use taxes, to reduce their overall tax burden.
- Commercial operators can benefit from new "bonus" depreciation options for new aircraft and equipment (especially from 2002), and new depreciation rates apply to new business aircraft or major upgrades.
- Out-of-state pilots may qualify for fuel tax refunds in Delaware, Maine, Indiana, and New Jersey, and AOPA offers resources like the "Pilot's Guide to Taxes" to help members understand these benefits.
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