How do I categorize allowed flight expenses for flying missions for Angel Flight?

[joedowdy]

I fly my personal aircraft to fly missions for Angel Flight, a recognized charitable organization.  Angel flight has recorded my allowable expenses in a year end summary.  They include aviation fuel, meals and lodging directly connected to my missions.  How do I categorize these in Turbo Tax?

[Opus 17 · Accepted solution]

Record your actual out of pocket costs as if it was cash/money donated to the charity.  You can't take any deduction for the value of your time, or depreciation/wear and tear on the aircraft.  

[Critter]

Enter them as cash donations. 

[undctiatc]

I fly for Pilots N Paws.  According to a letter sent from the FAA and IRS, all expenses relating to the charity flight are deductible.  I figure out a per hour cost of my 310 and then add whatever fuel.  That's just for the operation of the flight.  If I stayed in a hotel or had any other expense, I can claim that as well.  Basically, the ONLY thing you cannot claim is your time.  So an example of a flight for me;

3 hour round trip

$250/hr to operate (oil, maintenance, and engine reserve)  and $450 in fuel (ouch I know)

I claim all $1300 as a donation.

Hope this helps.

[Jchrisman83]

Hi what form from the FAA and IRS are you referring to. It would be nice to read on my end. Thanks

[jdixon]

According to an article by the accounting firm Lindsey & Brownell, only the variable costs associated with the charitable flight are deductible.  An allocation of fixed costs such as insurance, hangar, maintenance, etc. are not deductible. 

See Charitable Flights: Cleared or Takeoff or Grounded?

[LynnN82]

Like many tax subjects, this one does not have forms to report information supporting every deduction that might be allowed. FAA forms relate to pilot hours, etc., IRS forms relate to the claimed amount of a deduction of property and establishing its value. IRS has a series of forms that are used to report non-cash contributions . . . 8283 is one. However, you might benefit from IRS Publication 526. 

[jdixon]

Lynn - I had already downloaded and searched IRS Publication 526.  Lots of useful information there, but nothing specific about use of private aircraft on charitable flights for organizations such as Angel Flight or Pilots N Paws.

unctiatc - Can you please post a pdf of the "letter sent from the FAA and IRS" referenced in your 2/22/2020 post on this topic?  I'm sure that would be helpful/useful for many of us who fly charity missions.  Also, do you have a separate cash account set up for "engine reserve" or is it simply calculated based on an assumed cost for engine(s) replacement, overhaul or remanufacture?

Thanks,

JD

[jdixon]

It is my understanding after yesterday discussing this issue with a CPA experienced in this matter that the deduction of an allowance for "engine reserve" would not be permitted by the federal tax code, just as the deduction of a pro rata portion maintenance, insurance, hangarage, training, navdata, capital costs and other "fixed expenses" that are not directly related to the charitable flight itself are not deductible.

[PAguy1961]

I rent and fly Angel Flights.  Would I just claim the rental cost and any fuel as my deduction?

[Hal_Al]

Q. I rent and fly Angel Flights.  Would I just claim the rental cost and any fuel as my deduction?

A. Yes.