Flight training tax deductable?

[Duksrule]

Just wondering if anyone has ever looked into this. I know you can write of tuition of going to college. I see getting all of your aviation ratings as similar to going for an advanced degree.

[killbilly]

Originally Posted by Duksrule

Just wondering if anyone has ever looked into this. I know you can write of tuition of going to college. I see getting all of your aviation ratings as similar to going for an advanced degree.

You can write off interest paid on student loans if it's an accredited collegiate program, but you can't deduct the total amount of tuition.

If you use early distributions from an IRA to pay for college tuition, you do not have to take the 10% early withdrawal penalty. You still take a hit, but the blow is cushioned. I don't recommend touching the IRA, but some people do it this way.

I think - if you do it right, you can, theoretically, deduct your loan interest and pay it with the IRA without penalties. I'm not sure if this can be done. Depends on how you have to report it, I bet, but I'd consult a tax professional - a real CPA.

If you're a CFI (paid as a contractor) you can deduct your business expenses, which includes equipment, materials, and you can take depreciation on other things like computers. Things start getting a little more complicated there, though.

[ComplexHiAv8r]

If you are only increasing a skill set, and NOT preparing or another job, it can be tax deductable.

Example PPL - learning a new skill, NOT tax deductable

Example is Complex, HI training, IFR - increasing a known skill set, tax deductable

Example Commerical, CFI - change in skill set (new job potential), NOT tax deductable.

Not sure on ME (I need to look more into that!)

Once you have the commerical your medicals and BFR are deductable as a non-reimbursed business expense (if your company doesn't pay for it). Keeping current could also be, but I have heard that is still too far into the grey area.

[Minnesota_Flyer]

Originally Posted by ComplexHiAv8r

If you are only increasing a skill set, and NOT preparing or another job, it can be tax deductable.

Example PPL - learning a new skill, NOT tax deductable

Example is Complex, HI training, IFR - increasing a known skill set, tax deductable

Example Commerical, CFI - change in skill set (new job potential), NOT tax deductable.

Not sure on ME (I need to look more into that!)

Once you have the commerical your medicals and BFR are deductable as a non-reimbursed business expense (if your company doesn't pay for it). Keeping current could also be, but I have heard that is still too far into the grey area.

Correction: it would only be tax deductible if you were paying for training to increase your skill set in your current occupation. Increasing a skill set in a hobby is not deductible.

Examples: If you currently have Comm-ASEL and are working as a pilot, getting your comm-AMEL probably would be deductible. Getting your CFI would not be deductible because you would be preparing for a new profession (instructing) rather than improving skills for your current occupation.

If you are a CFI (and working as such), getting your CFI-I or MEI probably would be deductible because you are improving your skill set as an instructor.

Being that it's the tax code, though, these things are very complicated and your mileage may vary.

[ComplexHiAv8r]

Originally Posted by Minnesota_Flyer

Correction: it would only be tax deductible if you were paying for training to increase your skill set in your current occupation. Increasing a skill set in a hobby is not deductible.

Sorry I didn't detail that....but yes it is. Part 91 flying (instead of driving for business) I have been told does count. Getting an MBA as an Engineer I know is NOT deductable as Engineers do not need an MBA for normal employement. Attending semniars in Vegas in October IS DEDUCTABLE!!!

your mileage may vary.

That too.....have a good tax accountant that knows aviation!