Can you write-off Flight training costs for tax purposes?

[Savate]

I was wondering...since I'm paying my way slowly through my PPL, are costs incured towards one's flight ratings deductible?

For example, you can write off some costs of education (texbooks and such) so I wondered if you considered flight training a trade education, if this is possible.

Too late for this year, but maybe next year?

 

[Low and Fast]

I cant remember for sure but I think its only after you have your Commercial but then again im not sure.

 

[Vladimir Lenin]

mmm, this is gonna be good

 

[Savate]

?confused?

 

[midlifeflyer]

Educational costs are typically deductible if they improve your skills in the career you already have, not if they qualify you for your career.

Since a commercial certificate is a qualifier, the costs are generally not deductible. (Smart accountants and lawyers can find exceptions that may or may not work)

 

[LearLove]

The way I understand and the way my accountant does it is you can write off training post Comm or CFI.

In 99 I did my ATP and for $900 at ALL ATPs in TTN and wrote that off. This year I plan on doing my CFII (as I need to renew my CFI this year anyway) so next year I'll write that off.

 

[Flechas]

The way I understand and the way my accountant does it is you can write off training post Comm or CFI.

That is correct, only past Commercial, maybe next year!

 

[qmaster3]

my tax guys wrote mine off. Is it legal?? Dunno

 

[bobbysamd]

Training costs tax write-offs

Training acquired to begin a new vocation is not tax-deductable. In other words, all training through Commercial-Single-Multi-CFI-A-I-ME is not tax-deductable. I don't buy the use of the lifetime education exemption for this training and I'd bet the IRS won't, either.

Some would argue that a working instructor can deduct training for his/her advanced instructor ratings. That is a grey area to tread with caution.

Training that would be tax-deductable would be type ratings, e.g., the 737 for the Southwest interview, sim prep, ATP, etc. Of course, all these come off your taxes as business write-offs if you itemize.

Hope that helps a little more.

 

[MarineGrunt]

How about time-building to meet minimums for a job? (if you have all your ratings)

 

[MTpilot]

I know a guy who owns his own plane, he writes off all his trips as business expenses, but that's not training

 

[bobbysamd]

How about time-building to meet minimums for a job? (if you have all your ratings)

Nope. It's no different than renting for pleasure.

 

[urflyingme?!]

OK, how about if you don't plan on being a CFI? I have the comm, am working on multi....

 

[Fuzzy_is_Hungry]

After your Comm, you can call it "proficiency training" so write it off!

 

[bobbysamd]

After your Comm, you can call it "proficiency training" so write it off!

Try selling that to the IRS. Rotsa ruck!

 

[bobbysamd]

OK, how about if you don't plan on being a CFI? I have the comm, am working on multi....

CFI or not, any training acquired for career preparation is not tax-deductable.

And, let's say, you do not get a job right away and decide you need a CFI. Your CFI still will not be tax-deductable. If you become employed and decide to get it, especially to stay employed, your CFI would then be deductable.

 

[Low and Fast]

Thats odd because the day I finished my Commercial I was able to write off the remainder of my training and did until I finished my Commercial Multi and MEI ratings. Again this is what we were told that we could do by the Tax preparer seeing as how it was indeed Continuing my education to further my career.


Plus, how would it be any different from writing off College expenses (tuition, books, supplies) isnt that furthering your education?

 

[bobbysamd]

Continuing education deduction

Thats odd because the day I finished my Commercial I was able to write off the remainder of my training and did until I finished my Commercial Multi and MEI ratings. Again this is what we were told that we could do by the Tax preparer seeing as how it was indeed Continuing my education to further my career.

I don't believe the intent of the continuing education was for training for a new career. Your tax preparer should check again.

Plus, how would it be any different from writing off College expenses (tuition, books, supplies) isnt that furthering your education?

It depends on the purpose. If you incurred the expenses to change careers, train for a new career, etc., it would be misuse of that provision.

I just found this website that discusses pilot tax deductions. Maybe this information will also help. The author makes this important point:

1. Educational costs are deductible if the education maintains or improves skillsrequired by the taxpayer in the taxpayer's trade or business, including the trade or business of being an employee.

​

2. The education must not train you for a new occupation.​

​

Again, hope the information on the site clears up any misconceptions.​

 

[JB74]

If you become employed and decide to get it, especially to stay employed, your CFI would then be deductable.

Correct, if you haven't worked a day as a "commercial pilot", then the IRS doesn't consider you one.

However, you do qualify for the Lifetime Learning Credit. Max is $2000 and it is a credit, which means free money, not just a deduction. Only problem applying it to your return is that you would need to attend a flight school that is "eligible to participate in the student aid programs administered by the Department of Education".

In other words, if your school doesn't hand out pell grants and stafford loans, the paid tuition doesn't "technically" qualify.

 

[urflyingme?!]

OK, so if someone pays me $20 to fly a plane from one side of the airport to another than I'm in Tax break land?

 

[bobbysamd]

Flight school student loans

Only problem applying [the lifetime learning credit] to your return is that you would need to attend a flight school that is "eligible to participate in the student aid programs administered by the Department of Education".

if your school doesn't hand out pell grants and stafford loans, the paid tuition doesn't "technically" qualify.

. . . and find a 141 school that qualifies for these aid programs. You won't find any. Of course, there is at least one school that does a great job of hooking-up people with Key loans.

The intent of the lifetime learning credit is not to give would-be career changers a tax break to pursue their dreams, but to foster continuing education for its own sake. Currently-employed pilots have ample opportunities to deduct their continuing training as business expenses without incurring IRS attention.