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MJRB
Level 1

LLC for Private Airplane and schedule C

Filling out a scheduled C.  I established a LLC for a private airplane.  Unfortunately, the airplane was registered under myself and not my LLC.  Can I deduct the hanger fee, interest on loan,insurance, jet fuel, etc, I needed for the plane?   Does the plan need to be registered under the LLC to claim expenses under the LLC?   Is there any easy way to transfer the registration from myself to the LLC, without doing a "sale" and repaying all of the sales tax again.

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3 Replies
M-MTax
Level 12

LLC for Private Airplane and schedule C

The LLC is disregarded so it doesn't matter. 

MJRB
Level 1

LLC for Private Airplane and schedule C

What do you mean by disregarded?     The LLC is myself?   At some point, I want the plane in the LLC, for liability reasons.

LLC for Private Airplane and schedule C

To expand on @M-MTax comment, for federal income tax purposes a single-member LLC that has not elected to be taxed as an association, is defaulted to a disregarded entity.

This means that for federal income tax purposes, the owner of the single member LLC is who the IRS looks to for the filing.

Regardless of whether you have a single member LLC (except in certain situations as noted above) or are just a sole proprietor, both will complete a Schedule C.

Even if you transfer title of the plane to the single member LLC, you will continue to file the Schedule C.

 

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

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