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Thread: EX use for business??

  1. #1
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    Default EX use for business??

    I have a very specific question regarding using an experimental for business use. I have searched for an answer, but have not found one to my specific situation. If I own an experimental aircraft personally and use it for business purposes, in which I fly myself and my business partner to meetings, can I bill the client travel time as a consultant? Is this considered charging for transportation when that person that is transported is myself? Also, can I allow the business to cover the operational expense for the aircraft when it is in use by the business? I have 91.319, but I am not sure if it is clear in this circumstance.

    Thank you for your input.

  2. #2
    Senior Member David H's Avatar
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    Default Re: EX use for business??

    Rees,

    The guys on COPA (Cirrus Owners and Pilots Association) recommend and use this source for these issues:

    http://www.aviationtaxconsultants.com/contact.htm
    Daniel Cheung


    Good Luck!

    David

  3. #3
    Senior Member 40m's Avatar
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    Default Re: EX use for business??

    Quote Originally Posted by WarEagle View Post
    I have a very specific question regarding using an experimental for business use. I have searched for an answer, but have not found one to my specific situation. If I own an experimental aircraft personally and use it for business purposes, in which I fly myself and my business partner to meetings, can I bill the client travel time as a consultant? Is this considered charging for transportation when that person that is transported is myself? Also, can I allow the business to cover the operational expense for the aircraft when it is in use by the business? I have 91.319, but I am not sure if it is clear in this circumstance.

    Thank you for your input.
    Have them give you a nice bottle of Scotch and keep the IRS out of your pleasures

  4. #4
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    Default Re: EX use for business??

    Thanks guys. I was not as concerned with the tax implications as much as whether it was acceptable in the FAAs eyes.

    Sent from my Pixel 2 using Tapatalk

  5. #5
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    Default Re: EX use for business??

    Quote Originally Posted by WarEagle View Post
    Thanks guys. I was not as concerned with the tax implications as much as whether it was acceptable in the FAAs eyes.

    Sent from my Pixel 2 using Tapatalk
    I think he can clearly bill travel time to the client as a consultant if he is only transporting himself- that is not charging for air transportation and I donít think is impacted by the experimental nature of the vehicle he is traveling in. It should be billed the same as his other time or other travel time (ie if he travels by automobile or commercially and charges for the time) so it is clear that the compensation is for his time NOT the actual travel. I also think there is not an issue with the business coveting operational expenses that they incur. They canít lease the aircraft itself, but they can pay costs actually incurred related to the aircraft. The business cannot pay him for his piloting services but other expenses- fuel, maintenance, etc. I think are fine.
    If you want good FAA and tax advice use a law firm such as advocatetax.com. Be careful of accountants posing as attorneys.

  6. #6
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    Default Re: EX use for business??

    WetCub,
    Thank you very much. I really appreciate your input. There are so many things to consider when you plan to use a plane for business and pleasure. Thank you also for the tax referral.
    Quote Originally Posted by WetCub View Post
    I think he can clearly bill travel time to the client as a consultant if he is only transporting himself- that is not charging for air transportation and I donít think is impacted by the experimental nature of the vehicle he is traveling in. It should be billed the same as his other time or other travel time (ie if he travels by automobile or commercially and charges for the time) so it is clear that the compensation is for his time NOT the actual travel. I also think there is not an issue with the business coveting operational expenses that they incur. They canít lease the aircraft itself, but they can pay costs actually incurred related to the aircraft. The business cannot pay him for his piloting services but other expenses- fuel, maintenance, etc. I think are fine.
    If you want good FAA and tax advice use a law firm such as advocatetax.com. Be careful of accountants posing as attorneys.
    Sent from my Pixel 2 using Tapatalk

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