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Old 11-05-2024 | 02:29 PM
  #154  
sailingfun
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Joined: Feb 2008
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Originally Posted by UGBSM
Bonus depreciation tax laws were never never meant to be used by rich pilots to avoid W2 income tax. Good luck to you and your CPA with your inevitable IRS audit in 18 to 24 months.
As long as they can as a couple meet the test for active participation in the business they will have no issues with the IRS. Those running into audit problems usually are actually passively involved and can't use the depreciation against other income like Delta earnings. Depreciation does however have to be recaptured at some point. Lots of ways to delay that but the bill does come due.
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