AOPA Pilot Magazine - December 2013 - 94

NEWS & NOTES

MEMBER PRODUCTS

AOPA FINANCE

Aircraft ownership carries
tax benefits
How to keep the tax man at bay
WITH SO MANY TERRIFIC REASONS to buy an airplane-from making your own
schedule to seeing the world from a unique perspective-there are sound financial reasons for aircraft ownership, as well. More than money saved on overnight
trips, delays caused by airlines, and other miscellaneous expenses, owning an
airplane has definite tax advantages.
Of course, the best tax advice and counsel comes from your own tax professional, but some of the tax advantages of aircraft ownership are mentioned
here so that you will know what questions to ask and be able to guide the discussion when it's tax time.
If your business is the owner of an aircraft, you are entitled to MACRS
depreciation. MACRS stands for Modified Accelerated Cost Recovery System
which is the current tax depreciation system in the United States for tangi-

Owning an airplane is a job in itself, and one
that requires specific knowledge of your
responsibilities.
ble property, including airplanes. The benefit lies in the A, for "accelerated."
MACRS benefits an aircraft owner because the faster depreciation allows aircraft owners to deduct greater amounts during the first few years of aircraft
ownership. This is the IRS code, so there are lots of exceptions and fine print-
but as an aircraft owner, it's likely that MACRS impacts you in a positive way.
It's not just your aircraft itself that can ease your tax burden; some of the
expenses associated with aircraft ownership and usage are deductible. That
means fuel, maintenance, charts, et cetera. Those items are all part of a business' deductions. If you own your aircraft as an individual, you can still benefit
from these deductions when your aircraft is used in pursuit of business. Again,
your tax professional is your best friend here to make sure you can maximize
the deductions your aircraft creates.

Owning an airplane is a job in itself, and one that
requires specific knowledge of your responsibilities. In
addition to the tax advantages, understand other legal
and financial issues that can affect you. For example,
forming an LLC as the legal owner of your personal airplane can protect you in a liability situation, even though
there are no particular tax advantages to doing so. In
addition to the safe flying of your aircraft as a pilot, you
are tasked with understanding all the repercussions of
operating your airplane.
When it comes time to buy an airplane, you want to
deal with people who know their way around a cockpit.
The staff of AOPA Finance wants to make your purchase
experience as smooth as possible, and that starts with
being able to speak aviation. Call 800-62-PLANE (800627-5263). In a rush? Email info@aopafinance.com to
begin the application process today.
The information presented in this article should not be relied upon
as legal or financial advice. For the precise tax advantages for you,
consult an aviation-savvy lawyer and tax professional who will be
able to provide you with advice tailored for your state, regulatory
requirements, and your unique circumstances.

ANSWERS FOR PILOTS

CHARITABLE FLYING
DURING THE HOLIDAYS, many of

us who fly take time to reflect on
our many blessings: Our loved
ones, our health, our homes,
and our freedom to fly. Many of
us have shared the joy of flying
94  |  AOPA PILOT  December 2013

with our children, grandchildren, and friends-and some of
them have gone on to earn certification. As our hair grays, some
of us look around the holiday
table to see a new pilot or two

eating his or her pumpkin pie.
This is something to celebrate!
Now, it may be time to move to
the next level of sharing by participating in charitable flying
events in your community.

ON THE

WEB

Read December's Answers for
Pilots (www.aopa.org/PilotResources/Answers-for-Pilots.
aspx) for information on how
to get involved.


http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx

AOPA Pilot Magazine - December 2013

Table of Contents for the Digital Edition of AOPA Pilot Magazine - December 2013

AOPA Pilot Magazine - December 2013
Contents
President’s Position
Visual Approach
Letters
Waypoints
Proficient Pilot
Foundation Focus
License to Learn
Pilot Counsel
Fly Well
What Happens in Vegas...
AOPA Sweepstakes
Aviation Jobs
Gift Guide
Pilot Products
Pilot Products
News
People
Yacht of the Air
Around the World in 25 Days
Aviation Legends Walter Extra
Safety Pilot Landmark Accident: Unpredicted, Unadvised, Unaware
Summit 2013: Meeting Mr. Baker
Technique
Proficiency
Wx Watch
Technology
Ownership
Frugal Flier
Never Again
State and Local Action
Member Products
AOPA Foundation
Member Services
Government Affairs
AOPA Insurance Agency
Fly by Wire
Pilots
AOPA Pilot Magazine - December 2013 - AOPA Pilot Magazine - December 2013
AOPA Pilot Magazine - December 2013 - Cover2
AOPA Pilot Magazine - December 2013 - Contents
AOPA Pilot Magazine - December 2013 - 2
AOPA Pilot Magazine - December 2013 - 3
AOPA Pilot Magazine - December 2013 - President’s Position
AOPA Pilot Magazine - December 2013 - 5
AOPA Pilot Magazine - December 2013 - 6
AOPA Pilot Magazine - December 2013 - 7
AOPA Pilot Magazine - December 2013 - 8
AOPA Pilot Magazine - December 2013 - 9
AOPA Pilot Magazine - December 2013 - Visual Approach
AOPA Pilot Magazine - December 2013 - 11
AOPA Pilot Magazine - December 2013 - Letters
AOPA Pilot Magazine - December 2013 - 13
AOPA Pilot Magazine - December 2013 - 14
AOPA Pilot Magazine - December 2013 - 15
AOPA Pilot Magazine - December 2013 - Waypoints
AOPA Pilot Magazine - December 2013 - 17
AOPA Pilot Magazine - December 2013 - Proficient Pilot
AOPA Pilot Magazine - December 2013 - 19
AOPA Pilot Magazine - December 2013 - Foundation Focus
AOPA Pilot Magazine - December 2013 - 21
AOPA Pilot Magazine - December 2013 - License to Learn
AOPA Pilot Magazine - December 2013 - 23
AOPA Pilot Magazine - December 2013 - Pilot Counsel
AOPA Pilot Magazine - December 2013 - 25
AOPA Pilot Magazine - December 2013 - Fly Well
AOPA Pilot Magazine - December 2013 - 27
AOPA Pilot Magazine - December 2013 - What Happens in Vegas...
AOPA Pilot Magazine - December 2013 - 29
AOPA Pilot Magazine - December 2013 - AOPA Sweepstakes
AOPA Pilot Magazine - December 2013 - 31
AOPA Pilot Magazine - December 2013 - Aviation Jobs
AOPA Pilot Magazine - December 2013 - 33
AOPA Pilot Magazine - December 2013 - Gift Guide
AOPA Pilot Magazine - December 2013 - Pilot Products
AOPA Pilot Magazine - December 2013 - Pilot Products
AOPA Pilot Magazine - December 2013 - 37
AOPA Pilot Magazine - December 2013 - News
AOPA Pilot Magazine - December 2013 - 39
AOPA Pilot Magazine - December 2013 - People
AOPA Pilot Magazine - December 2013 - 41
AOPA Pilot Magazine - December 2013 - Yacht of the Air
AOPA Pilot Magazine - December 2013 - 43
AOPA Pilot Magazine - December 2013 - 44
AOPA Pilot Magazine - December 2013 - 45
AOPA Pilot Magazine - December 2013 - 46
AOPA Pilot Magazine - December 2013 - 47
AOPA Pilot Magazine - December 2013 - 48
AOPA Pilot Magazine - December 2013 - 49
AOPA Pilot Magazine - December 2013 - Around the World in 25 Days
AOPA Pilot Magazine - December 2013 - 51
AOPA Pilot Magazine - December 2013 - 52
AOPA Pilot Magazine - December 2013 - 53
AOPA Pilot Magazine - December 2013 - 54
AOPA Pilot Magazine - December 2013 - 55
AOPA Pilot Magazine - December 2013 - 56
AOPA Pilot Magazine - December 2013 - 57
AOPA Pilot Magazine - December 2013 - 58
AOPA Pilot Magazine - December 2013 - 59
AOPA Pilot Magazine - December 2013 - Aviation Legends Walter Extra
AOPA Pilot Magazine - December 2013 - 61
AOPA Pilot Magazine - December 2013 - 62
AOPA Pilot Magazine - December 2013 - 63
AOPA Pilot Magazine - December 2013 - Safety Pilot Landmark Accident: Unpredicted, Unadvised, Unaware
AOPA Pilot Magazine - December 2013 - 65
AOPA Pilot Magazine - December 2013 - 66
AOPA Pilot Magazine - December 2013 - 67
AOPA Pilot Magazine - December 2013 - Summit 2013: Meeting Mr. Baker
AOPA Pilot Magazine - December 2013 - 69
AOPA Pilot Magazine - December 2013 - 70
AOPA Pilot Magazine - December 2013 - 71
AOPA Pilot Magazine - December 2013 - Technique
AOPA Pilot Magazine - December 2013 - 73
AOPA Pilot Magazine - December 2013 - 74
AOPA Pilot Magazine - December 2013 - 75
AOPA Pilot Magazine - December 2013 - Proficiency
AOPA Pilot Magazine - December 2013 - 77
AOPA Pilot Magazine - December 2013 - 78
AOPA Pilot Magazine - December 2013 - Wx Watch
AOPA Pilot Magazine - December 2013 - 80
AOPA Pilot Magazine - December 2013 - Technology
AOPA Pilot Magazine - December 2013 - 82
AOPA Pilot Magazine - December 2013 - Ownership
AOPA Pilot Magazine - December 2013 - 84
AOPA Pilot Magazine - December 2013 - 85
AOPA Pilot Magazine - December 2013 - Frugal Flier
AOPA Pilot Magazine - December 2013 - 87
AOPA Pilot Magazine - December 2013 - Never Again
AOPA Pilot Magazine - December 2013 - 89
AOPA Pilot Magazine - December 2013 - 90
AOPA Pilot Magazine - December 2013 - 91
AOPA Pilot Magazine - December 2013 - State and Local Action
AOPA Pilot Magazine - December 2013 - 93
AOPA Pilot Magazine - December 2013 - Member Products
AOPA Pilot Magazine - December 2013 - 95
AOPA Pilot Magazine - December 2013 - AOPA Foundation
AOPA Pilot Magazine - December 2013 - 97
AOPA Pilot Magazine - December 2013 - Member Services
AOPA Pilot Magazine - December 2013 - 99
AOPA Pilot Magazine - December 2013 - Government Affairs
AOPA Pilot Magazine - December 2013 - 101
AOPA Pilot Magazine - December 2013 - AOPA Insurance Agency
AOPA Pilot Magazine - December 2013 - 103
AOPA Pilot Magazine - December 2013 - 104
AOPA Pilot Magazine - December 2013 - 105
AOPA Pilot Magazine - December 2013 - 106
AOPA Pilot Magazine - December 2013 - Fly by Wire
AOPA Pilot Magazine - December 2013 - 108
AOPA Pilot Magazine - December 2013 - 109
AOPA Pilot Magazine - December 2013 - 110
AOPA Pilot Magazine - December 2013 - 111
AOPA Pilot Magazine - December 2013 - Pilots
AOPA Pilot Magazine - December 2013 - Cover3
AOPA Pilot Magazine - December 2013 - Cover4
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