Taxes

[moberg]

Hi, just went though a host of old posts, but want to make sure I understand the taxes correctly.

At the end of the year your final tax bill is based on your total profit plus all taxes, banks fees, loan payments, and aircraft purchases (this last one is what I'm most interested in).

Thanks

[Jona L.]

Hi, just went though a host of old posts, but want to make sure I understand the taxes correctly.

At the end of the year your final tax bill is based on your total profit plus all taxes, banks fees, loan payments, and aircraft purchases (this last one is what I'm most interested in).

Thanks

not the loan payments, but the rest, yes

[ICEcoldair881]

ok so basically - all you need to know is this: if you spend more than you make (even by a margin) you MAKE MONEY from tax returns.

Cheers,
ICEcold

[Jona L.]

ok so basically - all you need to know is this: if you spend more than you make (even by a margin) you MAKE MONEY from tax returns.

Cheers,
ICEcold

You won't make any more than you spent in Taxes during the year, Austin. But you will get it all back

[ICEcoldair881]

nono, Tax returns are higher if you spend more money than you make - I watch my money profusely, Jona

-ICEcold

[alexgv1]

They're not going to give you money you never paid them until government bailouts are modelled lol! 

[Jona L.]

nono, Tax returns are higher if you spend more money than you make - I watch my money profusely, Jona

-ICEcold

Yet, dear Austin, no tax authority gave me a penny more than I payed them... And every cent they get from me is noted at 3 places!!

They're not going to give you money you never paid them until government bailouts are modelled lol! 

Just wait till the 2008 Financial-Crisis is built in... then you can pay yourself a 20M (or higher) bonus when your airline is BK

[schro]

Hi, just went though a host of old posts, but want to make sure I understand the taxes correctly.

At the end of the year your final tax bill is based on your total profit plus all taxes, banks fees, loan payments, and aircraft purchases (this last one is what I'm most interested in).

Thanks

I think it is easier to state it as such -

Taxable Income = Result + Loan Payments + Tax Collected

Basically, your airline operates on a cash basis, so aircraft purchasing is a great way to manage your tax bill at year end (or even on a monthly basis).

[moberg]

I think it is easier to state it as such -

Taxable Income = Result + Loan Payments + Tax Collected

Basically, your airline operates on a cash basis, so aircraft purchasing is a great way to manage your tax bill at year end (or even on a monthly basis).

+ aircraft purchases, right?

also, Jona L v. schro- do loan payments count?

[schro]

+ aircraft purchases, right?

also, Jona L v. schro- do loan payments count?

No, aircraft purchases are NOT excluded from your taxable income calculation. They are considered an EXPENSE for the tax year the purchase is made.

Loan Payments are NOT included in your taxable income (thus, you add them back to your "result" as shown in my formula above). Interest and bank fees are EXPENSES, thus, are kept in your taxable income.