Compensation for incidental usage of the airplane for remote assignment

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yl472401
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Compensation for incidental usage of the airplane for remote assignment

Post by yl472401 »

Does anybody have experience billing clients for incidental usage of the aircraft for their 1099 assignment or contract work?
What's the appropriate rate for the charge?
Thanks.
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Rich
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by Rich »

If I understand correctly, you will be using your aircraft in the course of doing work for your clients and wish to bill them for the aircraft use expense.
You'll need to get it in the contracts, of course. Many may not have policies/accounting set up for this. It seems reasonable, of course, but the amount is going to have to be reasonable, as well. Both to the customer (so they'll agree) and to the IRS, because you're going to want to deduct the same amount as a business expense.
Personally, I'd use $.50 per statute driving mile (had you driven) and call it good.
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jon1746
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by jon1746 »

That is exactly what I did for 10 years. Never had a problem with it with either the client or IRS
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yl472401
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by yl472401 »

Thanks!
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yl472401
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by yl472401 »

Rich wrote: Wed Aug 26, 2020 2:41 pm If I understand correctly, you will be using your aircraft in the course of doing work for your clients and wish to bill them for the aircraft use expense.
You'll need to get it in the contracts, of course. Many may not have policies/accounting set up for this. It seems reasonable, of course, but the amount is going to have to be reasonable, as well. Both to the customer (so they'll agree) and to the IRS, because you're going to want to deduct the same amount as a business expense.
Personally, I'd use $.50 per statute driving mile (had you driven) and call it good.
Thanks for the info.
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Colin
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by Colin »

When I did it I considered the time in the plane consulting hours the same as if I was on the ground. I was often taking notes about the project, discussing it with my business partner, and sometimes overflying the site. So it was just another few hours on the invoice.
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by AndrewM »

Colin wrote: Wed Aug 26, 2020 7:54 pm When I did it I considered the time in the plane consulting hours the same as if I was on the ground. I was often taking notes about the project, discussing it with my business partner, and sometimes overflying the site. So it was just another few hours on the invoice.
OK a little multitasking... helps pay for the 2nd engine I guess! :D
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Re: Compensation for incidental usage of the airplane for remote assignment

Post by Colin »

Sadly, all my consulting flights were in the single engine. But the flights SMO - HND did mean that I saved the sales tax on the plane.
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