lml@lancaironline.net Mailing List Archive

<x-flowed> <<<<<<<<<<<<<<<<--->>>>>>>>>>>>>>>> << Lancair Builders' Mail List >> <<<<<<<<<<<<<<<<--->>>>>>>>>>>>>>>> >> Don't forget to call the state and asked them about their taxes. In Michigan we are supposed to pay Use Tax on everything that is purchased out of the state but nobody does at least not on small items. I purchased N31160, already built, in Nevada and had to pay 6% Michigan Sales Tax within 30 days of the aircraft arriving in Michigan. It is also the aircraft purchaser's responsibility to prove what the aircraft is worth. I always figure that tax penalties are about 50% of the tax amount even if they say 3% to 6%. It is best to pay. In Michigan, there is no way of hiding an aircraft that is based at an airport. Airports report the N numbers of the aircraft based their to the state taxing authority. An annual license is also needed. The cost of the license is $0.01 per pound of gross weight. Not much but enough to keep track of the N number. Inspectors verify these N numbers and annual licenses. You can't gain by not paying the use or sales taxes in Michigan. If you want to gain on taxes, write off the portion of any flight and proportional maintenance that might have anything to do with work. If it doesn't have to do with work, find some work that it does have to do with. Start a DBA(Doing Business As) and keep track of the expenses and maybe even the income, if you are lucky, on a Schedule C. The IRS doesn't care if you rent your airplane but watch out because the FAA does. If you need help, call me. Sincerely, -- Lorn H. 'Feathers' Olsen, US MidTel, Corp. 248-771-1010, LNC2-320, N31161, PTK, Michigan lorn@mich.com >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> LML website: http://www.olsusa.com/Users/Mkaye/maillist.html LML Builders' Bookstore: http://www.buildersbooks.com/lancair Please send your photos and drawings to marvkaye@olsusa.com. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> </x-flowed>