Business owners who are also aspiring pilots, have you ever wondered if the cost of flight training can qualify as a tax-deductible expense? Well, fasten your seatbelt as we are about to fly (pun intended) through the tax code to find out if your aviation dreams come with a financial silver lining.
Is Flight Training Tax Deductible?
To answer the question, let’s look into what the tax code has to say, which is:
All the ‘ordinary and necessary expenses’ incurred or paid during a tax year for trade or business operations are deductible.
Now, there’s a bit to unwrap here, so let’s begin with ‘ordinary and necessary expenses.’
What Qualifies as Ordinary and Necessary Expenses?
According to the U.S. tax code, ordinary expenses are those that are typical and accepted in your specific trade or business. Necessary expenses, on the other hand, are those that are helpful and appropriate for your business operations.
Ordinary expenses could include costs like supplies, rent, and utilities, which are typical in many businesses. Necessary expenses include tools or services that help your business run smoothly, even if they are optional.
So, whether or not you can deduct your flight training expenses depends on whether it qualifies as ordinary and necessary according to IRS terms.
How can I claim deductions for my flight training expenses?
Flight Training as an Education Expense
The first thing you need to know is that flight training can qualify as an educational expense. And there are provisions within the tax code that allow you to deduct education expenses. However, the process isn’t entirely straightforward.
Education expenses can be tax-deductible if they meet specific criteria. They are deductible if:
- The education helps maintain or improve skills required for your current job.
- The education is required by your employer or by law to keep your job, status, or pay.
However, education expenses are not deductible if:
- The education is needed to meet the minimum educational requirements for your job.
- The education is part of a program that qualifies you for a new trade or business.
Flight Training as a Business Expense
If you’re training to become a professional pilot or plan to use your pilot’s license for business purposes, you might be able to deduct some of your training expenses as business costs. As stated earlier, you can claim expenses that qualify as ordinary or necessary for your job. This includes costs related to professional development and certification. For example, if you already work in a job where piloting skills are needed, you could deduct the cost of getting your pilot’s license and related training.
Is Private Pilot License Tax Deductible?
You may be able to claim deductions for your private pilot license if you can prove to the IRS that it is an ordinary or necessary expense.
Bottom Line
Claiming deductions that you do not qualify for can land you in IRS hot waters. So, when in doubt, consult a tax expert. This is the golden rule when it comes to claiming tax deductions.
At Tax Goddess, we specialize in helping business owners claim all kinds of tax benefits, including deductions. If you have been looking for an IRS-compliant way to claim unpopular tax deductions like flight training expenses, feel free to reach out today. Let’s discuss how to help you achieve that in a FREE consultation session.
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