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Heli_Splatter

Key Veteran

Silver Spring, MD by way of Sidney, Ne - USA

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I was wondering about a couple of things.

1.) If I sell an aircraft, I should report the sale as income on my taxes. Does anyone do this.

2.) If I have an aircraft that crashes, can I report the loss of the aircraft as an uninsured property loss? Has anyone tried doing this?

Hold On... I gotta get some popcorn started.

10-17-2016 05:27 PM
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SkyKing

Senior Heliman

Belvidere, Ill

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If you could document purchase price plus all "improvements " then compare to selling price. You should be able to claim a loss

10-17-2016 06:28 PM
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Dr.Ben

rrMaster

Richmond, VA, USA

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I have two things you DO need to think about in the context of loss:

Are your models covered for their actual replacement value in the event you have a house fire or theft? DO NOT assume yes. Some companies cap it at very small amount unless you add a rider.

Same question when they're in your automobile.

Ben Minor

Team Synergy Team Futaba Team Kontronik USA
Progressive RC

10-17-2016 07:11 PM
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cudaboy_71

Elite Veteran

sacramento, ca, u.s.

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I can't speak to the insurance claims. But, selling helicopters as a private individual would fall under the same category as garage sales. That is, buying things new that are kept for a number of years and occasionally selling them, usually at a loss.

https://www.irs.gov/businesses/smal...auction-sellers

if it ain't broke, break it.

10-17-2016 07:23 PM
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Heli_Splatter

Key Veteran

Silver Spring, MD by way of Sidney, Ne - USA

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Yeah Cuda...distinction is; "a loss on the sale of used items". If you make money on the sale, it is report-able for income tax purposes.

10-17-2016 09:25 PM
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cudaboy_71

Elite Veteran

sacramento, ca, u.s.

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If you're telling me you're making money in this hobby, you're doing better than me.

Spill the beans.

if it ain't broke, break it.

10-17-2016 09:42 PM
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Heli_Splatter

Key Veteran

Silver Spring, MD by way of Sidney, Ne - USA

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All you have to do is post it on Craigs List.

10-17-2016 09:53 PM
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classic

Elite Veteran

All over the place!

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It is Sooooo Easy to make a million dollars in this hobby!!

You just have to start with two million!

Which is worse, ignorance or apathy? I don't know and I don't care!

10-21-2016 12:38 AM
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helifanatix

Veteran

Fountain Valley, CA

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If you are filing W2
- you CAN NOT deduct any hobby related expense

If you are Doing Business As a RC Hobby Business
- you can deduct any Hobby related expense
- deduct any cost related in running the business
- deduct the lost (like what you mention)
- when you sale, claim as a income
- you will be filing as a 1099 / Schedule C / sole prioretor
- must set up a business license
- you can claim partial rent from your house but will effect resale value

If you want to file a lost under your home owner's insurance
- have to be included in policy (premium is calculated accordingly)
- have items documents
- pay deductible when filing a claim (is it worth it?)
- chance your premiums may go up
- weight your options carefully
- this is based in CA

This is an adult pass time ... I'm not certain we can subsidize it without consequences

- Scott

10-21-2016 11:10 PM
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Ace Dude

rrProfessor

USA

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It is Sooooo Easy to make a million dollars in this hobby!!
Indeed. Start with two million and what how fast it becomes a million.

  

10-22-2016 03:31 AM
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Heli_Splatter

Key Veteran

Silver Spring, MD by way of Sidney, Ne - USA

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It is an uninsured loss. There are other uninsured losses that are tax deductible.

My hobby is flying, not crashing. I do not go to the field expecting to loose a $2,500 heli. If it crashes, I have lost the value that I could have sold it for.

10-22-2016 06:10 PM
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LaDon

Veteran

Fort Dodge .Ia

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The audit will cost more than what you would ever get

Team Jr

10-22-2016 10:48 PM
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helifanatix

Veteran

Fountain Valley, CA

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Don,
Exactly

Heli Splatter,
if you are hoping someone to give you a "put" or want to transfer the risk, that is a tuffy.

that is part of the rush of this hobby ...a lot of $$$ at stake and thrill of everything coming back intact

Open a RC Heli Lesson Business
- than your lost can be written off
- you can do it but you have to pay your dues to reap the benefits
- organized record keeping is a must

If you are not willing to accept the most than perhaps sale it for the price you can get for it

- Scott

10-23-2016 12:06 AM
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classic

Elite Veteran

All over the place!

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Or, you could buy a small RC heli related business like, the Stator gator that makes several thousand dollars a year, then you can write off business expenses, like cell phone, internet, travel and expenses to go to fun flys and even some purchases for "R&D" in case you want to consider making other items to sell. You could deduct part of your house for office needs, millage deductions add up too!

The business pays for itself, requires a very small amount of personal time to actually build the gators, and it makes some money to buy more heli stuff without taking any "family" money and sometimes still shows a profit even with all the deductions.

I just wish I still enjoyed the hobby after 20 years.

Anyone interested in buying a small heli related business??

Which is worse, ignorance or apathy? I don't know and I don't care!

10-23-2016 03:38 PM
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