Re: Aircraft tax question

"Steve Foley" wrote:
> So if I bought a damaged aircraft for $5000, repaired it, painted
it, and
> sold it for $50,000, I would be liable for taxes $45,000?
>

Negative. An exception to the rules about capital vs. repair is
that in a planned program of renovation, just about every stinkin'
thing can be capitalized until the project is done and all signed
off. So your basis would be $50,000 if not a bit less.

Fred F.

.

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