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 and aircraft owners should investigate tax benefits like business expense deductions, training deductions, and sales/use taxes to reduce their tax burden.
- Commercial operators (over 50% business use) can utilize new "bonus" depreciation options for new aircraft and major equipment upgrades.
- Out-of-state pilots may be eligible for fuel tax refunds in Delaware, Maine, Indiana, and New Jersey.
- AOPA provides resources, such as "The Pilot's Guide to Taxes," to help members understand and leverage available tax benefits.
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