Originally Posted by
UAL T38 Phlyer
The question: could any portion of the aircraft's expenses (hangar/tiedown, annual, insurance, Ads, repairs) be written-off as business expenses?
No. In fact, many small and otherwise legitimate businesses have been
reclassified as "hobbies" by IRS; all deductions are then disallowed, sometimes retroactively. This generally occurs when the "business" shows a loss over multiple years. It wouldn't happen for, say, a machine ship (or for General Motors :)). Something like a horse riding school / stable where the owner keeps his own horses would be fair game, though. You're starting out honestly to begin with - hobbies aren't deductible - but the owner-owned aircraft "one horse" flight instruction scheme is a classic case.
The LODA is a good deal, though; then you can charge enough to (hopefully) turn a profit. See above, though, if you consistently show a loss. Remember, you're in aviation.
Consult a good tax / corporate attorney (of which I am not!) before you even start looking for the airplane. All of the advice on an internet forum (including this post) is suspect. :)