"Work related" flying

[Guest Rocko]

Hi all

 

Been considering the longer term viability of using an aircraft, in particular something like a J230, for "country trips" with my business. I'm an optometrist, and used to do a lot of country trips to isolated towns. I could get myself, a reception staff member, and a good amount of gear in this, while still being able to travel respectable distances outback. Seems these new aircraft are a cost-effective and practical way of achieving this, without bankrupting the business ;)

 

So, I was wondering if anyone else out there used their aircraft for business use, how it affects the taxman, what can be written off, etc. I'm curious to hear from people not directly involved with flight training, but "non-aviation" business use.

 

Can anyone contribute?

 

Cheers

 

Scotty

 

 

[Captain]

Scotty

 

There was a discussion on this Forum about 6 months or so ago about what may or may not be deductable for genuine business users.

 

Suggest you have a search for those.

 

I have heard of a Dentist or dental technician down this way who uses a 230 for travel around his area, but I haven't come across him yet.

 

My scrub lawyer/bush accountant view would be that if you genuinely use any vehicle for business and you claim realistic % of use and costs that are well documented, be it a car or van or motorcycle or aircraft then it will or should be a deduction.

 

Regards & hope this helps

 

Geoff

 

 

[Guest brentc]

I've been doing this for quite a while, however the old saying remains for my operations - 'if you've got time to spare, go by air.'

 

I'm yet to be stuck, however I've come close on a couple of occasions. I find I always need a contingency plan like a hire car from a local town, etc. The J230 is a great aircraft for this purpose. Plenty of room for your baggage and room to hang up your Armani suits in the rear.

 

My accountant has shyed away from claming my travels to date as he feels that it might be a bit of a can of worms as I probably don't use it enough yet to bother. If you're talking high percentages like 80%+ then yes. His comments were that if the trip could be made in a car I'd need a damn good reason to justify using an aircraft. Time would obviously be the reason, however you'd need to make up a lot of time to offset the extra cost.

 

 

[Guest ozzie]

could this be a grey area? Could Casa claim that you are using the aircraft commercially. even tho it is just transport?

 

 

[Guest pelorus32]

There was an article on this in the mag sometime in the Sept - Dec timeframe last year.

 

As for CASA - isn't the phrase "for hire or reward"? This hardly falls into that definition.

 

Regards

 

Mike

 

 

[poteroo]

It's just another business expense as far as ATO is concerned.

 

You have to separate the 'business' from 'personal' use - so keeping good records is important. Fuel slips from Hamilton Island might prove incrimminating though!

 

My accountant suggested some 'hire' first, so as to establish the viability of the aircraft use. Avoid trying to make your business 'fit' the aircraft - it has to be the other way round. Clients hate being inconvenienced just so you can fly there.

 

happy days,

 

 

[Yenn]

I used to hire a GA aircraft to get to a job at Agnes Waters when the road was really bad. Never had a problem but the cost was just about the same as going by car at 50c / km. From my experience the tax man will allow genuine expenses, and then spend a vast amount of time trying to find out where you are rorting the system even if you are not.

 

 

[Guest Rocko]

Locum work

 

It's something I've actually done on quite a few occasions previously, years ago. Just letting someone else do the flying back then ;)

 

Particularly useful when visiting extremely isolated communities.

 

When you're talking distances across a trip of 2-3000Km plus, over 2-3 locations, a car isn't that practical, for no other reason but time constraints.

 

Certainly, in my profession, there are still a number of optometrists doing this very successfully, through hiring light GA aircraft. Thought it'd be fun joining them ;)

 

How about the J160 then, as an option? Much space in the back?

 

Equally, is there anything out there in the 110kt or more category with a decent cargo area, LSA or RAA registered?

 

Scotty

 

 

[Admin]

Scotty - the CT has a huge amount of cargo space - one person in the US carries a surfboard in his and depending on load/fuel etc it can take 25kg each side. It has 130 litre fuel capacity and cruises at 130 knots TAS - just a suggestion but I am bias

 

 

[rick-p]

Brentc change your accountant or get him to subscribe to the Australian Taxation Reporter.

 

rick-p