Deducting 737 Type Rating cost????

[floater_b2]

Looking for some advice/help out there. I got my 737 Type last Nov. I'm currently a military pilot and am wondering if I can deduct that cost from my taxes or if I already had to be flying commercially in order to do this? And if I can, what category does it fall under? Business expense? Education? Anybody out there do this? Thanks for the help.

Floater

 

[C17CHS]

I'm not a tax expert, but there are two categories of deductions that might apply: "unreimbursed employee expenses" & "job search expenses." When claiming job search expenses, the expenses must be incurred while searching for another job WITHIN you same occupation...i.e. pilot. For those trying to change careers, the deduction doesn't apply. I've claimed deductions for both unreimbursed employee expenses (uniform cleaning, pro gear, etc.) and job search expenses (car/motel for interview, meals, etc.) over the years. I've never had a problem, but then I've never been audited either. I'm sure a tax accountant could steer you in the right direction.

 

[bobbysamd]

737 type tax deduction for military pilots

Ordinarily, you can deduct type ratings as a business expense. The test would be if one is earning his/her living as a commercial pilot. Civilian commercial pilots most definitely can deduct type ratings as business expenses.

For a military pilot, the test is less clear-cut. Does military flying fall under the definition of commercial flying? Do you need the type to further your career? Are you about to get out and need it to apply to Southwest, etc. The IRS could argue that you don't need a 737 type for your flying or military career, and could deny your deduction at audit.

In any event, it would be deductable as a business expense. Ask your accountant or tax lawyer to look up Private Letter Rulings to see which way the IRS wind is blowing on this question.