Another TAX DEDUCTION Question

[BoDEAN]

Fellow Pilots.
I am plunging through TURBOTAX on the web, where I tend to do my tax return , and have a question for the fellow pilots. I want to deduct all my training expenses, gas mileage, and books for my CFI training. I am filling out an 1040EZ form, but there is no spot on here for any kind of deduction input. Anyone offer any assistance or guidance, maybe I'm doing the wrong form lol!

 

[KEROSINE BURNER]

I think you will need to use form 1040 and also schedule A (?) itemized deductions.

If you can't beat the minimum deduction, you're better off with standard.

 

[BoDEAN]

1040, Ill look around turbotax.com for it.
Thanks

 

[Snoopy58]

Yep, if you want to file with itemized deductions (instead of the standard deduction), you have to file the full blown 1040, not the 1040A or 1040EZ. Only worth it if you itemized deducions total more than your standard deduction. The good news is the TurboTax walks you through it all fairly painlessly, and it will tell you if you'd be better off with the standard deduction.

Once you start itemizing, be sure you understand the rules for what can & can't be deducted. Again TurboTax will give you *some* help in this area, but it isn't the be all & end all of tax wisdom.

 

[prpjt]

You may want to take a look at IRS Publication 508 for guidance. If you are currently employed as a pilot there should be no problem, but if the certificate is to quaulify you for a new job it may be disallowed. Probably need to check with someone who has some expertise in this area. I've pasted a little excerpt.

To be able to deduct work-related educa-
tional expenses as business expenses, you must:

1) Be working,

2) Itemize your deductions on Schedule A
(Form 1040) if you are an employee,

3) File Schedule C (Form 1040) or Schedule
F (Form 1040) if you are self-employed, and

4) Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education.

You can deduct the costs of qualifying work-related education as a business expenses. This is education that meets at least one of the following two tests:

1) The education is required by your employer or the law to keep your present salary , status or job

2) The education maintains or improves skillsneeded in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

1) Is needed to meet theminimum educational requirements of your present trade or business, or

2) Is part of a program of study that will qualify you for a new trade or business.

 

[VFR on Top]

You may want to take a look at IRS Publication 508 for guidance. If you are currently employed as a pilot there should be no problem, but if the certificate is to quaulify you for a new job it may be disallowed.
[snip]
2) Is part of a program of study that will qualify you for a new trade or business.

There was an article on this stuff in one of the flying mags a year or two ago, and I seem to remember the guy saying that the feds look at flight instructing as a "new trade or business", distinct from that of being a "commercial pilot", and therefore rendering the costs of CFI training non-deductible.

 

[BoDEAN]

There was an article on this stuff in one of the flying mags a year or two ago, and I seem to remember the guy saying that the feds look at flight instructing as a "new trade or business", distinct from that of being a "commercial pilot", and therefore rendering the costs of CFI training non-deductible.

Odd that my CFI suggested I deduct my training ,and according to her, she did it when she was training.

 

[prpjt]

No disrespect intended to your CFI, but just because someone in a position of authority tells you something, does not mean it is either correct or legal. Bad information from a superior has caused many problems for many people. Often, very intelligent people are very wrong.

 

[Buffettpilot]

On a different note

Ok, Not sure on deducting my CFI training I did this past year, but who has done this in the past? I've read that CFI training is not deductible b/c it is for 'new' employment.

Here is a question I have no clue on, if you have your single engine commercial, can you deduct your mulit-commercial training?

I think you would be able to, since this is in addition to a commercial ticket you already have and you are increasing your knowledge/experience in the commercial realm of your license. Anyone have any thoughts on this?

Thanks

 

[Low Timer]

Crashpads

Talking of deductions, can a person deduct thier crashpad rent and utilities?

 

[starvingcfi]

quick question. is the atp tax deductable? just curious. thanks

starvingcfi

 

[bobbysamd]

Tax deductable ATP

Absolutely. Any training post-initial training that furthers you in your business or profession is tax-deductable. Type ratings, too. Of course, as others mentioned above, you have to itemize on your return to take advantage of these deductions.

The IRS determines on a case-by-case basis any questionable items, meaning that precedent is not always binding. Your accountant or tax will have access to something called Private Letter Rulings. Private Letter Rulings will indicate in which direction the wind is blowing on IRS issues.

Hope that helps some more.

 

[bobbysamd]

Crashpads as primary residence(s)

The answer is probably no but not definitely no....

For instance, commuting expenses between TWO JOBS may be deductible. If you deliver Pizza once a week as a part time job in your hometown... or work in the Home Depot whatever... or have a business at home.... Maybe you fly aerial photography out of your hometown local FBO...

You may be able to deduct the expenses of travelling to your flying job. CPA can tell you for sure.

Further to this answer, I believe the determining factor is what constitutes your primary residence for tax purposes. I don't know the specific test for "primary residence."

Also, if you receive any offsets and/or per diem from your company for time spent away from home/domicile/crashpad, etc., you may only be able to deduct the net difference of the two.

While I'm thinking about it, there are bunches of other things that you can deduct. Uniforms. I believe their upkeep is also deductable. Professional magazines. I've heard of pilots who deduct cable TV because they watch the Weather Channel. That seems to push the envelope. Some moving expenses might be deductable; there is a distance test.

Best thing still is to ask your accountant or tax lawyer.