Message-ID: <3AE6BD7C.BEC864E@regandesigns.com>
Date: Wed, 25 Apr 2001 07:05:16 -0500
From: Brent Regan <Brent@regandesigns.com>
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To: Lancair List <lancair.list@olsusa.com>
Subject: Re: Taxes
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Reply-To: lancair.list@olsusa.com

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I built my IV-P in California and when the tax man came calling I showed him
copies of my receipts for the kit, engine, prop, etc. and he went away
happy. Later that same year the local paper did a human interest article on
my plane and it's handsome and heroic pilot ;) The reporter called the
factory and someone there was quoted as saying the average value of the IVs
was about twice what I had told the tax man. My argument was that the plane
was the sum of the parts but the factory estimate added labor. The county
assessor read the article and gleefully sent me a supplemental assessment.
That newspaper article cost me about $1,500 ....A YEAR.

I moved to Idaho about two years ago in March. Fortunately I reviewed the
tax law and found out that California bases its assessment on where the
plane is based on January 1, so I rented a hanger at Coeur d'Alene and moved
the airplane there before the new year started. The tax savings paid for two
years rent of the hanger. California still sent me a tax bill because I
still rented a hanger at 2Q3 but I managed to sidestep that bullet.

Idaho charges you a penny a pound (rated gross weight) a year to register
your aircraft and the proceeded go directly to search and rescue. I pay
$34.00 a year. The only down side is that you have to put a big sticker on
your tail (well, the planes tail).

I traded my California property for twice the house and 20 times the land in
Idaho. I live 10 minutes from town and have a 2200 x 40 foot paved "access
road" that accommodates my IV. The internet and my airplane allow my
business to flourish regardless of location. Life is good.

Regards
Brent Regan


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