Scheduling a pilot is a pain in the ass. I call it "chartering the human".

Being on the payroll doesn't solve it either. Say I want to do a 5 day trip over Christmas. My pro pilot is going to give up their holiday to sit in a hotel for 5 days? Yeah, right.

And where are you going to find a pro pilot who will be happy flying only 150 hours a year?

The costs for another pilot are substantial, well beyond the salary. Hotels, meals, rental cars, benefits, overhead, etc.

Your advice just isn't on point for the freedom of being truly owner flown, and the money isn't the main issue.

I'd love to have an SIC that I can turn off after the flight and stick in the baggage compartment until I need them again. Know anyone who wants that job?

Mike C.

What was your schedule conflict rate? The times the flight wasn't even planned because a pilot wasn't available? Would you take a 5 day trip over Christmas sitting in a hotel?


If there was an Olympic sport in dealing with mechanical issues on an aircraft, I would be at least a bronze medalist.


Clearly, we have some CRM issues if the SIC thinks as you predict. You really have a low opinion of owners.

My mentor pilot was a full time salaried pilot (flying a Bravo) and he didn't feel like you do at all. He rather enjoyed our flights and so did I.

Mike C.

This will never work out in the end.

Either you have recapture when you sell (which can be BIG taxes since it occurs all in one year), or the asset has lot value (you capital is gone).

You would always be better off sticking the money in an investment instead.

I have never understood the delusional folks who think depreciation is a win. Indeed, if it occurs over more than one year, you are only saving future less valuable dollars.

Mike C.

Nah, my bosses were damn good in their industry and understand their skill in their limited yet highly successful field does not mean they are as good in all other things

There is no way there were not scheduling issues with hired pilots.

It is the number one gripe I hear from people who hire pilots to fly their airplanes.

You can lie about it, but scheduling another human or two to fly you around is a serious impediment to flying around freely.

Mike C.

There is no way there were not scheduling issues with hired pilots.

It is the number one gripe I hear from people who hire pilots to fly their airplanes.

You can lie about it, but scheduling another human or two to fly you around is a serious impediment to flying around freely.

Mike C.

If true, this means the owners have already down selected flights to fit the pilot schedule and are thus subservient to the pilots. In other words, the plane isn't as useful to the owner as it could be since it is encumbered by the pilot's availability.


You can't hire someone who is available 24/7.

You never answered the question about a 5 day trip over Christmas. I think we know why.

Mike C.

If true, this means the owners have already down selected flights to fit the pilot schedule and are thus subservient to the pilots. In other words, the plane isn't as useful to the owner as it could be since it is encumbered by the pilot's availability.


You can't hire someone who is available 24/7.

You never answered the question about a 5 day trip over Christmas. I think we know why.

Mike C.

Using that phrase at all tells me you do not understand what a pain it is to have a payroll.

Owner flown is a different thing than most of what you have talked about. We are talking past each other.

Not everyone has the same tax situation as you.

Describe a situation where depreciation is a win, for any tax situation.

The only one that breaks even is 100% the first year. Anything else means you are losing value as future dollars are worth less and the depreciation schedule doesn't take that into account.

Like real property, 39 years. That last depreciation value is worth a lot less than the money you spent to buy the property 39 years earlier.

Mike C.

Describe a situation where depreciation is a win, for any tax situation.

The only one that breaks even is 100% the first year. Anything else means you are losing value as future dollars are worth less and the depreciation schedule doesn't take that into account.

Like real property, 39 years. That last depreciation value is worth a lot less than the money you spent to buy the property 39 years earlier.

Mike C.

Describe a situation where depreciation is a win, for any tax situation.

The only one that breaks even is 100% the first year. Anything else means you are losing value as future dollars are worth less and the depreciation schedule doesn't take that into account.

Like real property, 39 years. That last depreciation value is worth a lot less than the money you spent to buy the property 39 years earlier.

Mike C.

Depreciation is not getting the full tax offset of a long lived asset in the year of purchase (assuming there is no 100% bonus depreciation in effect).

For example, you start a company to drill water wells and buy a $1M drill rig. You make $1M revenue in your first year. Great, you broke even, no profit, should be no taxes, right?

Nope, not due to depreciation. The tax law says the drill rig has to be depreciated. Let's say it has a 10 year straight line schedule to make the example simple, so you only get $100K off your taxes this year. Thus you "made" a $900K profit you have to pay taxes on even though you have no money. You may have to pay, say, $300K in taxes.

Then in the next 9 years, you get a $100K offset on your taxes each year, but in the last year, that $100K isn't worth as much as it was when you bought the rig due to inflation (a much bigger deal in recent times). Net result is that you end up getting less tax offset for your purchase than its present value at purchase, maybe only about 70% value. Those extra tax dollars you paid in the first year on no profit were much more valuable than the offset in the 10th year.

When you go to sell the rig after it is fully depreciated, you get tax on the sales price as full income.

Now explain to me how any of this deferred taxes and kept dollars in your pocket. Where are those dollars? It looks like taxes got paid early and you were out more dollars due to depreciation.

Buying a higher priced object to save taxes doesn't work out. You will never be ahead at the end of the game doing that, particularly if the cost of capital is considered.

Mike C.

Depreciation is not getting the full tax offset of a long lived asset in the year of purchase (assuming there is no 100% bonus depreciation in effect).

For example, you start a company to drill water wells and buy a $1M drill rig. You make $1M revenue in your first year. Great, you broke even, no profit, should be no taxes, right?

Nope, not due to depreciation. The tax law says the drill rig has to be depreciated. Let's say it has a 10 year straight line schedule to make the example simple, so you only get $100K off your taxes this year. Thus you "made" a $900K profit you have to pay taxes on even though you have no money. You may have to pay, say, $300K in taxes.

Then in the next 9 years, you get a $100K offset on your taxes each year, but in the last year, that $100K isn't worth as much as it was when you bought the rig due to inflation (a much bigger deal in recent times). Net result is that you end up getting less tax offset for your purchase than its present value at purchase, maybe only about 70% value. Those extra tax dollars you paid in the first year on no profit were much more valuable than the offset in the 10th year.

When you go to sell the rig after it is fully depreciated, you get tax on the sales price as full income.

Now explain to me how any of this deferred taxes and kept dollars in your pocket. Where are those dollars? It looks like taxes got paid early and you were out more dollars due to depreciation.

Buying a higher priced object to save taxes doesn't work out. You will never be ahead at the end of the game doing that, particularly if the cost of capital is considered.

Mike C.