Contract pilots

[Nolife]

Any of you contract guys deduct the cost of recurrent trng on your taxes? This is my first time filing self employed and I didn't see the deduction on the business portion of the return form.

 

[Hugh Johnson]

Definitely! Hotel, plane, meals (IAW the US perdiem publication.) Jepps, suits, headset. If that's the only thing you're doing, phone, computer, home office. If you have to drive to different places to pick up the plane, mileage.

First time I would recommend an accountant familiar with the profession.

 

[greed]

Yes in agreement with all of the previous post. Also, remember any copies / faxes and office supplies along with dry cleaning.

 

[Nolife]

Got all the office stuff, headset, cell phone, mileage, etc. I just didn't see the training or tuition deduction in the business form. Thx for the tip. Used turbotax this time and I deducted training in personal 1040.

 

[Gulfstream 200]

Got all the office stuff, headset, cell phone, mileage, etc. I just didn't see the training or tuition deduction in the business form. Thx for the tip. Used turbotax this time and I deducted training in personal 1040.

Do yourself a favor and run it on turbotax then give it to a good accountant who does work with pilots. First time I did this I saved WAY more than his costs. Never used turbotax again.

Once you start dealing with 1099s, your own business etc, its usually not worth doing your own taxes (IMHO)

 

[G4G5]

Get an account, I have a good buddy of mine who does contract. He pays quarterly's, the account makes him money. Newspapers and magazines (looking for work), his web page and Internet (looking for work), along with most of his mileage to and from flights (drops off a resume on his way to a trip, looking for work) are all covered.

He makes more then I do annually and pays quite a bit less in taxes.

 

[satpak77]

Similar theme, how are these guys paying for recurrent, etc? Insurance? Do they carry their own or how does that work?

 

[G4G5]

My buddy carries a tremendous amount of insurance, starting last year his largest Fortune 50 customers started requiring increased liability. He also uses Simuflight and pays for his own training (intl procedures, Crm, yada yada). Just a guess but I remember him telling me something along the lines of " it costs me $90+K before I even take my first flight"

With the days of ISBAO manuals approaching, the days of just hiring your buddy are over. Approved manuals require contractors to meet new requirements

 

[DieselDragRacer]

Be very careful with home office deductions. IMO if you choose to use this deduction especially for the first time speak with tax professional about the pros and cons first before merrily clicking your way through a home office deduction on TurboTax.

 

[Gulfstream 200]

Be very careful with home office deductions. IMO if you choose to use this deduction especially for the first time speak with tax professional about the pros and cons first before merrily clicking your way through a home office deduction on TurboTax.

very good advice!

Home office is a huge flag. A pilot w a home office is a larger one.

My wife has a home office for her business, and a good accountant knows exactly what is appropriate %'s to claim.

I would not try that game with Turbotax....all Turbotax is good for is a simple return.