Deducting personal training expenses incurred when you own an aviation business

[flog]

Hi,

Hypothetically, if I owned an aviation business (say a small scenic flight or charter op), would I be able to claim CPL/IFR/etc. training costs personally? From Ab-initio? CPL up?

I know I can claim them through the business, but for tax reasons it would be better for me to do it personally.

Has anyone got any information on this? My accountant looked at me blankly when I asked the question which I usually take to mean it's going take him a year, and me a lot of money, to find out. (Not that I won't do that anyway, but if someone knows a precedent it would make the journey of discovery that much shorter...)

Cheers,
Flog.

[chimbu warrior]

Well I am no accountant, but I'm guessing you will need your CPL prior to establishing your "small scenic flight or charter op" so that you can obtain an AOC.

I'm guessing that it would be pretty difficult to commence training from scratch and,
obtain a CPL
obtain an instrument rating
establish a business
obtain an AOC
all in the same tax year. Not saying impossible. Just very unlikely.

So from a layman, my guess would be no, it is not possible.

Maybe find a better accountant.

Good luck.

[bobcat74]

Gday Flog

I'm no accountant but as far as I understand it you can only claim deductions for training expenses if they related to your current employment. That means if you currently earn an income from some aviation activity and getting another licence or rating will help you do your job better etc then you can most likley claim it, just like if you did a TAFE course or went to uni part time to. I claimed a deduction for my PPL based on the fact I was an aircraft engineer and it helped me do my job better.

Hope that helps
bobcat74

[flog]

Chimbu, the addage is 'Work ON the business, not IN the business."

There're are many operators, with AOC's, that don't have licenses. Well, mayby not many, but some.

Like Warrenn Buffett. Owns Netjets, never piloted an aircraft in his life.