Sticking it to the man (taxes)
09-29-2006, 04:12 PM
#1
Line Holder
Thread Starter
Joined APC: Sep 2006
Position: FO
Posts: 94
Sticking it to the man (taxes)
I believe it's a Sprint commercial that has the president sitting behind the desk saying "its my way of sticking it to the man." and his right hand man says, "but sir, you are the man, so your sticking it to yourself?"
anyways I was wonder if any fellow pilots had an insight on the matter in terms of Taxes, because I was looking over my taxes that I had my CPA do for me and I was wondering what are all of the deductions that pilots are able to take. My CPA does not specialize in pilots so he is a bit unfamiliar with everything that is able to be deducted. Any help would be much appreciated.
Cheers,
anyways I was wonder if any fellow pilots had an insight on the matter in terms of Taxes, because I was looking over my taxes that I had my CPA do for me and I was wondering what are all of the deductions that pilots are able to take. My CPA does not specialize in pilots so he is a bit unfamiliar with everything that is able to be deducted. Any help would be much appreciated.
Cheers,
09-29-2006, 05:28 PM
#2
Day puke
Joined APC: Feb 2006
Position: Out.
Posts: 3,865
This info comes with the usual caveats:
always consult a professional
past performance does not imply future returns
do not take internally
make sure your CPA know the what the meal/hotel rates are for DOT TIMED LIMITED workers (pilots, long haul truckers, etc). For example, regular folks can deducts 50% of meal expense, but DOT TIme Limiteds get to deduct 70% (I think those were the rates last year... may not be exact but you get the point). I have found several tax folks that give me a blank stare when I mention DOT time limited.
You might also look at the difference between standard tax perdiem rates (what the IRS says a hotel room and meals cost per day) for the city's where your overnight. In some cases, using the standard rates will let you deduct MORE than using your actual expenses. Warning: you cannot mix per diem rates in this town with actual costs someplace else. You must choose one method and go with it (I cannot remember if one can mix perdiem for hotels with actual for meals or vice versa.... talk to your pro)
If you are REALLY bored or an incurable insomniac, you can order IRS publication 17 for free and read it. It can be a bit confusing, but it may help you quiz you CPA about your particular stuff. Or you might find think to yourself, "heck, i can fly a zillion dollar plane, maybe I can do this myself." I did, and I do.
Hope this helps
always consult a professional
past performance does not imply future returns
do not take internally
make sure your CPA know the what the meal/hotel rates are for DOT TIMED LIMITED workers (pilots, long haul truckers, etc). For example, regular folks can deducts 50% of meal expense, but DOT TIme Limiteds get to deduct 70% (I think those were the rates last year... may not be exact but you get the point). I have found several tax folks that give me a blank stare when I mention DOT time limited.
You might also look at the difference between standard tax perdiem rates (what the IRS says a hotel room and meals cost per day) for the city's where your overnight. In some cases, using the standard rates will let you deduct MORE than using your actual expenses. Warning: you cannot mix per diem rates in this town with actual costs someplace else. You must choose one method and go with it (I cannot remember if one can mix perdiem for hotels with actual for meals or vice versa.... talk to your pro)
If you are REALLY bored or an incurable insomniac, you can order IRS publication 17 for free and read it. It can be a bit confusing, but it may help you quiz you CPA about your particular stuff. Or you might find think to yourself, "heck, i can fly a zillion dollar plane, maybe I can do this myself." I did, and I do.
Hope this helps
09-29-2006, 09:52 PM
#4
Gets Weekends Off
Joined APC: May 2006
Position: Student Pilot
Posts: 849
I know one deduction that you could take is anything used/required for your job.. so purchases like headset, charts, etc. Just save the receipts or credit card statement. (sorry not an airline pilot yet, don't know anything about the above stuff!)
09-30-2006, 01:48 AM
#5
Line Holder
Joined APC: Apr 2006
Posts: 27
My company has a 'pay for training' program and I know some guys got a deduction for it. I think it's called a nonreimbursed business expense or something. Not sure exactly how much you get back. I've seen an article on AOPA's website about tax deductions for GA aircraft owners and pilots but I canceled my membership so I can't find it anymore. Another deduction I've heard about it business suits that are bought for job interviews. Cell phones and computers used to check schedules, weather, etc. is another one.
10-02-2006, 09:48 AM
#6
Line Holder
Joined APC: Sep 2005
Posts: 26
There are lots of on line resources. Electronic logbooks that help calculate per diems etc. Some of these will help with other deductions as well.
you may want to try this site http://pro-diem.com/
just Google the words Pilot and Per diem. You will come up with CPA's and tools that specialize in Taxes etc. for pilots.
PH
you may want to try this site http://pro-diem.com/
just Google the words Pilot and Per diem. You will come up with CPA's and tools that specialize in Taxes etc. for pilots.
PH
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