AOPA Pilot Magazine - March 1958 - (Page 56) YOU CAN FkY BIRECT TO YaUR COTTAeE DOOR and find the most deluxe vacation uccomm~dations i n the Californiu desert, TWO 3200'turf landing strips rivate planes. Desert Air offers the finest guest rooms in the Palm Spriitgsarea. nai Suites are a bautiful ingrcam-byday-comforhble droom bynight, plusacovered anaiandprivateenclmedpatio, large dressing mornsand private bath with tub and shower. Every resort facility - Entertainment niatly in the Compass Room Resfau. rant and Bar. Family Plan Rates. ather avenue-d tax mvinAside from strictly aviation ~ I X swings, you should give careful attention b all of your &hed deduckiom for transportation, travel and other expense account ikma. The IRS ha8 in&catad a tighiening up of its requir* menb for reporting these itern& It is extremely h p o h n t ta b p debiled records of aU q e n m ibma and particularly expen~eamount money d m bnrsed hy an employer. T h e income tax form for 1957 contains a fiew line (&A) which would a p pear t require the taxpayer to write a down on the *st paw of the form the amount rehburwd by his employer i n expense m o u n t money, m taxpayer e should disregard thk line on the 1967 return. However, starting with the IB58 \ ' 4 I , HOTEL RE80R-r PALM DESERT AIRPARK P. 0 . Box 1270 PALM SPRINGS, CALIFORNIA T e k p h : PAtwiew 8-Slot In 10s Anaeles OUnklrk a-0708 cu8t xepre8mks vdm) The effect of this new p-on i~ s pmit you t write off approximately a tw*t&ds of the cost of new planes and equipment &vex a period equal t~ WIN YOUR one-half of their d u l Eves Thii method permits & d e p d a t i o n deduction of ttte ''straight h e " rab i the n fimk year after the a b a f t i s p u p chased. This offers an o b ~ o w adtax vantage to m a n ~ taxpaThe recent law also allom the %urn of the yws-digits method" f o r new airplanes bought afhr December 31, 1963. In many cases, this method will be even more sdvanageou~ a the k x t payer thm the ' ' d m balance1' method. The tieurn of the y e m ~ d i g i b ' ' method of depreciation allowance cornpuhtionJ on an drcrdt w t b g $10,000 with a n m h l We of five years, ia worked ont as follows: Get the htd o the digits the yeafl f for which the depredation ia t be a taken. X other words, add the a i 5, n gh 4 3, z11; the tab1 i 15* which is the , s sum of the "years-digik" This figure then is uwd in the following manner: "THE GROUND U P 'THE s w m n BW I' I !this listing and the k r a h e n t of predation is by no m e m ~ exhaustive. hfomnation given in this 8rtide ahodd be used only as a general &de. Your accountant mid atbrney win be helpful allies i applying these principles h the n facts of your case, w well aa suggesting d u r n , this i d o m t i o n dI be rel q u i d Hence, it b m e s e s m t i d for the taxpayer f keep m s a d, January 1, 1958, of the qenditure of expmws account funds. However, regdaI5ons h effect since 1921 xequire the taqayer t repork the o amount of money he rec&vw as expmses from hb company and itamim them expenses. I the totda balance, f he m m no tax on the expew money. If r w i p b exceed dbbursementa, he i s required t include the balance as taxo able income. A new m a 1 wmkshmt (IRS Form ,. 2106)I now avahbla at local tax o&es, i designed t help cdculab proper tax s o treatment for transpo~hkionexpaw, ., travel expensea while sway from home, and reimbursed bushem mxpnsea. This form may he, but i%~equtred h n & b, attached t~ the r&um In connection with prepaxation of your tax re-, it s h d d almya be borne in mind tlwk sp&c fa&, a d the treatmenk of them, will be materid t each sihatiom The application of a the~wtoth~~~e~~of lawyer, and by consdking him in any 8uhtantid cam, when in doubt, you k t hare - r un savings. Although most of the flyer% attantion wiU be centered on his in tax return, he ahodd not lm sight of the fa& that substantial savings also &re possible 3 he applies for all of fhe gas* line tax d m & h~ which he ia entitled. One cent d the t h r e cmts per gallon Federal gasoline tax ia d u n & able t non-highway m m m . H n n y o of the S b h also allow refunds of all ox p a d of the S t a h tax paid on gas+ line used in aircraft. You should inv* tigak the situation in the Eta- where you m& your major pmchawa. AOPA now is i the p m x m of n ita Nraphlet, ''A~ixitionGamline Refunds," which w m pubmhed in 1966, This buoklet I t the @he ba and the refund8 dIowed in each ghte, and explains how refund applications hould be a d . A limited number of the I056 d i n axe still avdable. All in d,t h e e are legitimak ways l i which you can cut down the coat of n flying. Perhaps you now will agree with I that the cost of flying and income tax M h e *re d w l y rel8ted. END ~~ THE AOPA PILOT
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