TAX and the private aircraft

[Squawk7700]

Pruners, I've been speaking to a few people about using my private GA aircraft for work use in a non-aviation related company travelling to and from work and to and from clients.

Many people out there are saying I can "easily" just claim my aircraft, in terms of operating costs, depreciation, insurance, etc, on my tax, yet my accountant says NO and that I would have to have a VERY solid case for the tax man to say it was a requirement for me to use the aircraft, such as because of the *massive* amount of time it will save, or perhaps the remoteness of a customer as there are no roads that go there, :bored: etc.

Has anyone actually done this legitimately or is anyone able to offer valuable advice?

[Woomera]

Your accountant gave you his professional opinion - and you come to PPRuNe for a "second opinion"??? :ugh:

Do you get a second opinion from your accountant on your aircraft maintenance issues?

Sorry to be cynical, but your accountant is correct. Also, from the very limited information you've given, use of your private aircraft for business purposes may be deemed Aerial Work, requiring a CPL and AOC.

Sunny Woomera

[Squawk7700]

True... however not all accounts are 100% accurate and there are MANY different interpretations of the Tax laws in our big country.

I'm after someone who is doing this now... legally (or atleast if they think it is)

My accountant hasn't done it before, so he's as much in the dark as I am.

Personally I don't think my work is a commercial op if I travel to a customer and home afterwards.

[Andy_RR]

I am aware of two Medical Specialists that did/do this - i.e. fly their own aircraft to and from their clinics in rural areas.

Not that I'm in the medical profession at all.

One of them, who was involved in me getting my medical, recommended I find a way of working flying into my business so that I could use it to help pay the bills.

A

[youngmic]

G,day Squawk,

I've been claiming my aircraft for awhile now, two seperate purposes, 1st was as a means of travelling between various bases as an employee. Contacted the ATO on this matter and they said fine just keep records and aportion the correct ratio of pvt and work related. This however was not an ATO private ruling so doesn't mean it's 100% legit, but they did say fine, and that'll do me.
2nd is as a means to travel and inspect an investment property, haven't checked with them on this one but it would seem logical, shouldn't matter a wit what type of vehicle you choose m/cycle, car, truck etc.
After all the cost of an airline ticket is deductible in the appropriate circumstances.
Just a thought though, you mentioned from home to work, generally this is not claimable.
Good luck
M

[poteroo]

There are hundreds of people legitimately claiming for use of their own aircraft - geologists, vets, machinery servicemen,consultants, solicitors, accountants,among some I know.

In many cases, they began by hiring aircraft, and over a year or two, built up some numbers which became the basis of their justification for ownership. I know of several who did this - only to reach the conclusion that it was going to be a loser for them to purchase.

As Woomera noted, there can be some 'grey' areas in utilising an aircraft for your business use - and I'm not going there in this response!! ( a search on pprune would locate several threads on this very subject.)

I've used aircraft for 36 years to conduct my agricultural research and advisory business, averaging about 200 to 250 hrs annually. But, I hired for 8 years of this, until I could really determine the economics and the practicality of it. Since then, I've owned and operated 4 different Cessnas. My time savings over 28 years of ownership amounted to 2 hrs saved per 1 hour flown - but this was for an operation where the aircraft was 30 metres from the house,OCTA,and I could land right on the job.

I can't emphasise enough that when you use an aircraft for business, there are enormous pressures upon you to get there, and on time. This places low time pilots in a very difficult situation, and it's so, even if you are the sole POB. The weather might be OK for one trip per month, but if you fly 5 days per week - then expect to have some rough stuff to handle.

We all rationalise our decisions, and when flying yourself on business, there's the added pressure of wanting to show the world that it's going to be successful. That means increased risk taking, and that's probably why the 'private & business' flying sector doesn't have the best record.

There's also the question of where you can land, and how you'll get from there to your client. The ground sector might be difficult and time consuming - you have to add that into your 'real' costs.To successfully use an aircraft in the bush, you may need to operate 'off-airport' a lot. This means locating acceptable and permissable paddocks close to where you want to visit.

In this case - if hiring, make sure you have the owners and insurers acceptance. If you own it - that's your own decision. In any case, if you haven't been trained for this sort of flying, then get it. There are one hell of a number of traps for the unwary once you get off prepared strips.

The practical limitations may kill your perceived ecomomies. Just be sure it's not you too.

happy days,

[Charlie Foxtrot India]

R, as you know we have many people who hire aircraft from us and claim it on their tax. Medical folks, mining folks, environmental folks etc. After all, whether you travel there by hire car, QANTAS, donkey, Forester or whatever as far as I can tell it's a legit expense, especially in your case!

Suggest call the ATO and ask for a ruling.

[Oh that's super!]

I think it is a good idea to ask ATO as well as for experience of other people on this forum. I personally know two specialists (medical) that operate their aircraft to travel to their clinics and claim the expenses back on tax. I also know a few other people who operate their own aircraft to travel to and from clients' sites in remote areas (and not so remote areas).

In my experience, accountants have not proven too terrific unless they have the specialist knowledge in the partciular field. I had a run-in with one because he said 'no you can't do this' and the tax office, upon my enquiry (because I had a niggly doubt), said 'yes of course you can, it's clearly stated in "blah blah"'. It does happen, unfortunately.

[nasa]

Interesting......Woomera....If I wanted to fly my Bell 407 from the Southern Highlands of NSW to Sydney on a daily basis to commute from my home to work, and also make the aircraft available to my business and interconnected companies for use for managment, do I require an AOC as the companies are the ones paying the operating cost?????
BTW, I will be looking for a pilot to do this in the not to distant future if you are interested (is this a := or a :D )
"Second Place is First Place for Losers"

[djpil]

..yet my accountant says ..I discovered that my accountant didn't know very much about tax aspects of aircraft ops so I visited one who specialises in aviation.