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Helicopter Training: To Purchase or Not to Purchase?


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In speaking with my accountant (I am in Real Estate and have a SubChaper - S Corp) he is telling me that it would be better for me to purchase my own training helicopter for getting licensed and time building because I can write it off as a company expense. Well I have enough equity in my home to buy a Schweizer for around $100K and then pay an instructor to get my ratings.

 

But I am wondering what the cost of operating this helo would be with maintenance, insurance and other expenses.

 

My next thought was then maybe I could rent out the aircraft to the school as an extra aircraft or possibly timeshare it with other people. But then I will have to look into different insurance levels and such.

 

 

Then when I am ready to transition into a career or other larger aircraft selling the aircraft and starting over.

 

Has anyone else considered this option and what was their findings.

 

I am not rich by any means. Just have an opportunity to choose a different path.

 

Thank you for the input and direction ahead of time.

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In speaking with my accountant (I am in Real Estate and have a SubChaper - S Corp) he is telling me that it would be better for me to purchase my own training helicopter for getting licensed and time building because I can write it off as a company expense. Well I have enough equity in my home to buy a Schweizer for around $100K and then pay an instructor to get my ratings.

 

But I am wondering what the cost of operating this helo would be with maintenance, insurance and other expenses.

 

My next thought was then maybe I could rent out the aircraft to the school as an extra aircraft or possibly timeshare it with other people. But then I will have to look into different insurance levels and such.

Then when I am ready to transition into a career or other larger aircraft selling the aircraft and starting over.

 

Has anyone else considered this option and what was their findings.

 

I am not rich by any means. Just have an opportunity to choose a different path.

 

Thank you for the input and direction ahead of time.

 

You can do Commercial/IFR/CFI/CFII for probably less than $70,000 without the headaches of hangaringing, insurance and maintenance. That probably amounts to 200 - 250 hours. If you use a helicopter 100% for business use you can probably write off the expenses, but tax law is kind of a crap shoot. You might want to double check with an accountant that does a helicopter business before you commit, since I doubt the IRS would buy off on training time and hour building as a business expense, particularly since you can't use the helicopter for business use (other than incidental stuff) without the Commercial ticket. You could inadvertantly put yourself between a rock and a hard spot with FAA rules and IRS rules.

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Guest rookie101
sorry thot that was the buy versese rent thread, i'll keep digging.

 

Threads have been dug up :P :D. Amenra here are two threads that deal with the purchasing of helicopters as trainers. The first one is dealing directly with your question, while the second may not but you may still find some useful info in it.

 

1. http://helicopterforum.verticalreference.com/helicopterfor...4&hl=buying

2. http://helicopterforum.verticalreference.com/helicopterfor...ic=3586&hl=

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I wish I had bought a 300 when I started training, a clean machine would have been a cheap way to learn.

Only me and instructor flying, putting low hours on the hobbs, availability when required, only me to blame if damaged!.

Could have sold at end of inital training if I wanted to progres to turbine, or have a machine that Hopefully was up together for use when I wanted .

I costed the idea to late in training but there was a substantial saving as long as there were no real failurers\damage.

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To put a somewhat different spin on it...

 

A few years back, five of us bought an R22 with a little under 400 hours on it. Two guys already had their PP-RH. Two of us did our instruction and checkrides in that ship, and the fifth guy is about to do his checkride.

 

Because of outrageous insurance rates, we opted to carry liability only, a decision which has pretty well paid for itself.

 

We estimate our cost to operate the ship at around $105/hr including maintenance, inspections, and insurance. We fly the ship around 200-250 hours/year.

 

I am pleased at the way the partnership has worked out. So much so that three of us plus another local pilot will be taking delivery of a new Raven II next month. We plan to still stay in the R22 partnership because the ship is both fun and cheap to fly.

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I am curious PaPilot ? there were/are 5 of you, and no hull coverage,,,, what's the "agreement" between you 5 if one of you wreck it? I fly a friend of mines ship w/ him & he only has liabillity too, and we really dont have any "agreement"---but? i am from the "old skool" & figger if i wreck his ship?--- i will "give him mine"--that is if i live thru the wreck :rolleyes:

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I am curious PaPilot ? there were/are 5 of you, and no hull coverage,,,, what's the "agreement" between you 5 if one of you wreck it? I fly a friend of mines ship w/ him & he only has liabillity too, and we really dont have any "agreement"---but? i am from the "old skool" & figger if i wreck his ship?--- i will "give him mine"--that is if i live thru the wreck :rolleyes:

After considerable discussion, we agreed to share any losses.

 

The R44 is another story -- we're getting hull coverage on it.

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After considerable discussion, we agreed to share any losses.

 

The R44 is another story -- we're getting hull coverage on it.

 

 

and i bet the key was "considerable" <_< "discussions"

 

Look at your savings tho, from not wrecking & not insuring-----it IZ a gamble,,,, the 22 paid off !

 

i hate to quote Clint Eastwood, but? "ya feel lucky?"

 

that X-tra ins cost means=ya all better fly ALOT more ;) --i'm still @ sky manor airport & the restaurant is still open :)

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Guest 13snoopy
In speaking with my accountant (I am in Real Estate and have a SubChaper - S Corp) he is telling me that it would be better for me to purchase my own training helicopter for getting licensed and time building because I can write it off as a company expense. Well I have enough equity in my home to buy a Schweizer for around $100K and then pay an instructor to get my ratings.

 

But I am wondering what the cost of operating this helo would be with maintenance, insurance and other expenses.

 

My next thought was then maybe I could rent out the aircraft to the school as an extra aircraft or possibly timeshare it with other people. But then I will have to look into different insurance levels and such.

Then when I am ready to transition into a career or other larger aircraft selling the aircraft and starting over.

 

Has anyone else considered this option and what was their findings.

 

I am not rich by any means. Just have an opportunity to choose a different path.

 

Thank you for the input and direction ahead of time.

Please feel free to email me at

markadalton@gmail.com

I am in the same field as you(real estate) and have went through the same deliberations, although mine were three years ago.

I ended up buying and it's been interesting.

Let me know if I can assist.

Regards,

Mark

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