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Sale of Airpane & Hanger

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    #1

    Sale of Airpane & Hanger

    Client sold an airplane share ($7,250 loss) and his hanger share ($17,015 gain). It was never used for business purposes. I know the loss on the airplane is personal and not deductible. I assume the entire gain on the hanger is taxable. Is this correct?

    Thanks in advance.
    Tags: None
    #2
    Taxable Gain

    Yes, it would be a taxable gain.

    The good news is that if it was not used in a trade or business, it was a capital asset. The gain is reported on Schedule D. If he owned it for more than one year, then it will qualify for capital gain tax rates.

    BMK
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.

    Comment

      #3
      He only lost $7,200 on the sale of an airplane?
      Most former airplane owners would consider that a gain.
      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

      Comment

        #4
        Fyi

        The storage and maintenance facility is called a hangar.

        A hanger is for clothing.



        BMK
        Burton M. Koss
        koss@usakoss.net

        ____________________________________
        The map is not the territory...
        and the instruction book is not the process.

        Comment

          #5
          But I've also seen an airplane ON a hanger - at the Smithsonian I believe...
          "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

          Comment

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