WingnutWick
Well Known Member
Good feedback.
Thanks
Charles
Thanks
Charles
Last edited:
I am in the process of purchasing an 7a for business. So, here is the short version. We discussed this with our accountant, lawyer, insurance, etc. about the best way to set it up. For us, the plane will be in the company name (you can also do LLC). We will be keeping meticulous logs of all travel, maintenance, and costs. For us, the goal is to have 100% use towards business, especially in the first year. For the first 5 years, (I’m told), the company use needs to be above 50%. We have no intention of dipping down below 90%. Costs are deductible and plane is rapid (bonus) depreciation. We want to avoid any potential claw-back that could occur with a shift to too much personal use.
We put 20% down, financed through Banterra Bank and insured with Falcon. Transition training with the above poster, Tom Berge. All great to work with.
As for us, we have an electrical contracting company in California that does commercial solar installations throughout the state, so are traveling to a variety of remote areas.
If I want to do a personal trip, I can always rent a 172 or Arrow. But, those are sooo boring
PDexter,
Good info, this is similar to what a few of my friends also do. I too am in CA. I'm curious, what's driving the 50% limit?
Charles
Charles,
It’s the IRS that set the 50% limit. I’m just an engineer, so an accountant may chime in on the details. I just know that we need to keep meticulous records, and (we) want to keep the business portion above 90% for the benefits.
Thanks,
Paul
PS - can you give me a hall pass for getting through the Lemore airspace on my way to Bakersfield?!