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solo tax in WA?


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Whats the thought process behind the "solo tax" I have seen at atleast 1 school in washington?

 

There is no tax on "training" (maybe "education"?). So if you are not receiving dual instruction you are essentially just "renting". That is taxable, so says the state of WA.

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There is no tax on "training" (maybe "education"?). So if you are not receiving dual instruction you are essentially just "renting". That is taxable, so says the state of WA.

 

But you still rent the machine when receiving dual. The 'education/training fee' is the extra instruction charge. All this is is a 'revenue enhancer' by the helo co.

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Teddy,

I have checked with my tax account and just checked my invoices and I did charge/there is a tax on solo flights. When you fly solo you are paying for the rental and no instruction so therefore you are taxed. There is not a tax on instruction/teaching whether in the classroom or in the air in the State of WA.

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But you still rent the machine when receiving dual. The 'education/training fee' is the extra instruction charge. All this is is a 'revenue enhancer' by the helo co.

The rental is not considered a rental when receiving dual instruction because it is consider an instruction tool therefore it is not taxable. The helicopter is part of instruction when receiving dual. You receive no instruction when soloing but you are utilizing what you have learned from that dual instruction. Also you are taxed when you rent the helicopter for the checkride because you are not being taught anything but you are showing what you have been taught.

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Well, I'm not an accountant, but the FAA requires "solo training", so should that not still be considered an educational expense? That term is used specifically, and it is a government agency, so it shouldn't be a stretch that it applies.

 

61.109 © For a helicopter rating. Except as provided in paragraph (k) of this section, a person who applies for a private pilot certificate with rotorcraft category and helicopter class rating must log at least 40 hours of flight time that includes at least 20 hours of flight training from an authorized instructor and 10 hours of solo flight training in the areas of operation listed in §61.107(B)(3) of this part, and the training must include at least— (blah, blah blah...)

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Well, I'm not an accountant, but the FAA requires "solo training", so should that not still be considered an educational expense? That term is used specifically, and it is a government agency, so it shouldn't be a stretch that it applies.

 

61.109 © For a helicopter rating. Except as provided in paragraph (k) of this section, a person who applies for a private pilot certificate with rotorcraft category and helicopter class rating must log at least 40 hours of flight time that includes at least 20 hours of flight training from an authorized instructor and 10 hours of solo flight training in the areas of operation listed in §61.107( B) (3) of this part, and the training must include at least— (blah, blah blah...)

 

 

Who is teaching you during the solo training??????

 

 

I imagine it depends on the wording and interpretation of the tax law. One can certainly train independently and solo work is required "training" by the FARs. But if the tax law states "teaching", well then, not so much. Just like every other tax law and FAR out there.....grey areas abound!! Steve, got your CPA on speed dial? :) Gotta love tax time.

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Saturday night math:

 

20 hrs solo is 10% of your training cost, which comes to $6,500. Tax that at 8% and you have 2 hrs of flight time.

 

Now, get hired at a Washington school and don't pay income tax on your paltry CFI salary....

 

Bigger things to worry about than tax codes Teddy.

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The rental is not considered a rental when receiving dual instruction because it is consider an instruction tool therefore it is not taxable. The helicopter is part of instruction when receiving dual. You receive no instruction when soloing but you are utilizing what you have learned from that dual instruction. Also you are taxed when you rent the helicopter for the checkride because you are not being taught anything but you are showing what you have been taught.

 

Still sounds like just another way by the guv'ment to squeeze money out of someone. You Washington folks are weird!

:)

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