I cant wait to level up to this stage! We are in Norcal and just bought our first out of state property. Looking forward to getting enough doors to play in this arena. Thanks for sharing Tony!
The person that is going to rent a cirrus usally will be purchasing the aircraft. They are required to recieve instruction by the insurance carrier of buyer.
I'm almost positive accelerated depreciation doesn't mean you save that much in taxes. It means you get to book that much in expenses, which reduces your income. So when apply his tax rates to his reduced income, he would be saving about half that much in taxes.
I was hoping you would explain and provide prices for the airplane's other chief expenses including engine and propeller reserve, avoinics database updates, the various parachute related reserves, oil changes, "routine" annuals, and anything else I may have missed.
That’s a tax professional question. Let’s just say I do use it for personal also there are just rules and regulations behind it. In short at long as it’s more than 50% use I have been told you should be good if you document it well.
Based on the 2017 tax ruling I am not clear on the 1031 of aircraft used for business. Can you 1031 it and defer the gains at sale? I see mixed answers on this.
You are also allowed to carry forward and claw back taxes. Meaning it doesn't all need to come out of one year, if you don't make that cash. But most do. I was about two years late for this party. Still getting my PPL, but already talking to Cirrus about '24.
Tony your insurance policy includes permission for putting it on the line for rent, roughly 18k annually for the policy? Does this permit student pilots to use the plane as well?
Yes I actually have it on a blanket policy with the flight school. It is mostly rented to business owners for trips but also those that are transitioning from a Cessna or similar. No students really.
I cant wait to level up to this stage! We are in Norcal and just bought our first out of state property. Looking forward to getting enough doors to play in this arena. Thanks for sharing Tony!
Nice! Good luck.
I want to meet the people who are going to rent a cirrus for $625 an hour….
The person that is going to rent a cirrus usally will be purchasing the aircraft. They are required to recieve instruction by the insurance carrier of buyer.
I wouldn't for PPL training but I have rented a cirrus twice!
I rent a SR22 for $550 an hour in ny
I have rented them. Mostly in vegas for a little less. But he’s in Cali. Everything is more expensive in SoCal
I'm almost positive accelerated depreciation doesn't mean you save that much in taxes. It means you get to book that much in expenses, which reduces your income. So when apply his tax rates to his reduced income, he would be saving about half that much in taxes.
Are you planning to sell it in a year that you have losses? A lot of the tax savings would be lost to recapture at sale
I don’t plan on losing money. :)
This is exactly what im doing. Great to see that is can work.
Don’t you end up paying all that depreciation back when u sell in the form of recapture?
Shhhh don't burst his bubble
Tony; I love planes but it blew my mind the accelerated appreciation ! I definitely need to all those important things
I was hoping you would explain and provide prices for the airplane's other chief expenses including engine and propeller reserve, avoinics database updates, the various parachute related reserves, oil changes, "routine" annuals, and anything else I may have missed.
Thanks for the feedback. I’ll look at doing another video with that info.
sounds great but when he finally decides to sell the jet there is depreciation plus the capital gain due to having to recoup the depreciation
Love this! Thank you for spreading the good news about private aviation. I'm a jet broker myself and more people need to see this.
We should connect. Looking to buy another later this year or next year.
is all this depreciation and tax write off applicable if plane is used for non business related (personal/vacation) use?
That’s a tax professional question. Let’s just say I do use it for personal also there are just rules and regulations behind it. In short at long as it’s more than 50% use I have been told you should be good if you document it well.
Based on the 2017 tax ruling I am not clear on the 1031 of aircraft used for business. Can you 1031 it and defer the gains at sale? I see mixed answers on this.
Tony can you have your team post the previous video on the same topic? The one that was taken down?
This is a better version of the previous video that was posted. Goes more in depth.
You had $450,000 of taxes to write off?
Fortunately yes. #RealEstateInvesting
Why are you doing TH-cam content then haha ? Want to be famous and rich?
@@publicname515 another venture and challenge for me. I Want to share and inspire.
You are also allowed to carry forward and claw back taxes. Meaning it doesn't all need to come out of one year, if you don't make that cash. But most do.
I was about two years late for this party. Still getting my PPL, but already talking to Cirrus about '24.
@@publicname515 Why pass up an opportunity to make more money/get more clients?
Yeah but hey , who has $123,000 UPFRONT??????
PLUS the monthly payment???
Good point. But more than you would think.
Tony your insurance policy includes permission for putting it on the line for rent, roughly 18k annually for the policy? Does this permit student pilots to use the plane as well?
Yes I actually have it on a blanket policy with the flight school. It is mostly rented to business owners for trips but also those that are transitioning from a Cessna or similar. No students really.
Can the finance guys in the comments verify this.