denverpilot
Tied Down
Good catch. I wasn't thinking. You'll see some of that eaten by fees and what-not, too.
The point was that you have to make a pretty healthy return in a non-tax-sheltered investment but you're correct, only the gains are taxed.
If you qualify, some things can be done inside Self-Directed IRA's instead of direct also, which can help.
People do go a little nuts with this, though... a lot of folks were holding stock from personal S-Corporations inside Roth IRA's for example... Which was always quite questionable.
Another Appeals court just upheld lower court decisions that holding S-Corp stock in a Roth isn't kosher recently. That one will get you hung out to dry in an audit.
All sorts of interesting twisty little mazes in tax law.
Mostly for non-business pilots, the biggest problem is we spend cash like water and can't tax shelter as much of it as our peers.
Those with a business need to fly get a significant discount on the overall cost of their flying.
