Tax Tips
Reasonable and necessary business expenses are DEDUCTIBLE from your personal income;
even if:
a) You are not a corporation *
b) Your efforts in the business are PART TIME
In the opinion of our Board of Director's tax consultant, and MBA-CPA, the Form 1040,
Schedule C, can be completed by you or your tax service to realize additional advantages
as a result of the pursuit of your Aircraft Appraisal Business.
For Example
1) You and your business (and family) earn $50,000.
2) Your attempt to and intend to show a profit.
3) You own an aircraft which originally cost you $50,000.
4) You use the aircraft 50% of the time for the conduct or development of the appraisal
business.
5) You take two business trips per year at a cost of $1,000 each in your aircraft and 50%
of the trip was dedicated to the pursuit of the appraisal business.
6) Your fixed cost of ownership (including hanger, maintenance, and insurance) are $1,500
per year.
7) You pay membership fee in NAAA of $750, and meet other Tax Service Criteria.
The Results **
If you are a tax qualified appraiser, you may/will pay $7,762 in Federal Income Tax.
If you are NOT a tax qualified appraiser, you may/will pay $9,600 in Federal Income
Tax.
For a federal income tax savings of $1,840.00
If your original aircraft cost was $20,000 you will save 938.00 in federal tax.
*If your business is a corporation, different rules may apply, consult your
professional tax advisor.
** If you deduct your membership fee, 50% of your aircraft, and 50% of your travel.
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