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.
Compensation for incidental usage of the airplane for remote assignment
Moderators: Rick, Lance Murray
- yl472401
- 4 Diamonds Member
- Posts: 251
- Joined: Sat May 16, 2020 5:02 pm
- First Name: Bryan
- Aircraft Type: DA40
- Aircraft Registration: N890US
- Airports: 1C5
- Has thanked: 68 times
- Been thanked: 24 times
Compensation for incidental usage of the airplane for remote assignment
Diamond DA40, Diamond DA42NG, PPL, IR
- Rich
- 5 Diamonds Member
- Posts: 4602
- Joined: Mon Aug 30, 2010 12:40 pm
- First Name: Rich
- Aircraft Type: DA40
- Aircraft Registration: N40XE
- Airports: S39 Prineville OR
- Has thanked: 145 times
- Been thanked: 1184 times
Re: Compensation for incidental usage of the airplane for remote assignment
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.
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.
2002 DA40-180: MT, PowerFlow, 530W/430W, KAP140, ext. baggage, 1090 ES out, 2646 MTOW, 40gal., Surefly, Flightstream 210, Orion 600 LED, XeVision, Aspen E5
- jon1746
- 3 Diamonds Member
- Posts: 157
- Joined: Sun Oct 10, 2010 10:13 pm
- First Name: jon
- Aircraft Type: DA42
- Aircraft Registration: N888UB
- Airports: KFSD
- Has thanked: 1 time
- Been thanked: 13 times
Re: Compensation for incidental usage of the airplane for remote assignment
That is exactly what I did for 10 years. Never had a problem with it with either the client or IRS
- yl472401
- 4 Diamonds Member
- Posts: 251
- Joined: Sat May 16, 2020 5:02 pm
- First Name: Bryan
- Aircraft Type: DA40
- Aircraft Registration: N890US
- Airports: 1C5
- Has thanked: 68 times
- Been thanked: 24 times
Re: Compensation for incidental usage of the airplane for remote assignment
Thanks!
Diamond DA40, Diamond DA42NG, PPL, IR
- yl472401
- 4 Diamonds Member
- Posts: 251
- Joined: Sat May 16, 2020 5:02 pm
- First Name: Bryan
- Aircraft Type: DA40
- Aircraft Registration: N890US
- Airports: 1C5
- Has thanked: 68 times
- Been thanked: 24 times
Re: Compensation for incidental usage of the airplane for remote assignment
Thanks for the info.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.
Diamond DA40, Diamond DA42NG, PPL, IR
- Colin
- 5 Diamonds Member
- Posts: 2006
- Joined: Sat Aug 21, 2010 8:37 pm
- First Name: Colin
- Aircraft Type: DA42
- Aircraft Registration: N972RD
- Airports: KFHR
- Has thanked: 319 times
- Been thanked: 527 times
Re: Compensation for incidental usage of the airplane for remote assignment
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.
Colin Summers, PP Multi-Engine IFR, ~3,000hrs
colin@mightycheese.com * send email rather than PM
http://www.flyingsummers.com
N972RD DA42 G1000 2.0 s/n 42.AC100 (sold!)
N971RD DA40 G1000 s/n 40.508 (traded)
colin@mightycheese.com * send email rather than PM
http://www.flyingsummers.com
N972RD DA42 G1000 2.0 s/n 42.AC100 (sold!)
N971RD DA40 G1000 s/n 40.508 (traded)
- AndrewM
- 4 Diamonds Member
- Posts: 239
- Joined: Sun Nov 20, 2016 2:05 pm
- First Name: Andrew
- Aircraft Type: DA40
- Aircraft Registration: N897KC
- Airports:
- Has thanked: 73 times
- Been thanked: 75 times
Re: Compensation for incidental usage of the airplane for remote assignment
OK a little multitasking... helps pay for the 2nd engine I guess!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.
- Colin
- 5 Diamonds Member
- Posts: 2006
- Joined: Sat Aug 21, 2010 8:37 pm
- First Name: Colin
- Aircraft Type: DA42
- Aircraft Registration: N972RD
- Airports: KFHR
- Has thanked: 319 times
- Been thanked: 527 times
Re: Compensation for incidental usage of the airplane for remote assignment
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.
Colin Summers, PP Multi-Engine IFR, ~3,000hrs
colin@mightycheese.com * send email rather than PM
http://www.flyingsummers.com
N972RD DA42 G1000 2.0 s/n 42.AC100 (sold!)
N971RD DA40 G1000 s/n 40.508 (traded)
colin@mightycheese.com * send email rather than PM
http://www.flyingsummers.com
N972RD DA42 G1000 2.0 s/n 42.AC100 (sold!)
N971RD DA40 G1000 s/n 40.508 (traded)