For the reasons you listed, I do not instruct for compensation in my own gyro. For me the big one is county tax. If I don't use it commercialy, I don't pay tax on it. And yes, I have given friends free instruction. And yes, I do think the FAA has it wrong by considering that compensation.I actually do instruct for free (at least in sailplanes), in that I give dual to any member of my glider club at no charge (even primary training for new members seeking to learn to fly). The FAA, however, says I am being compensated because I can log the time. Here's the word from AOPA:
The FAA alleged volunteer instructors received compensation by “accumulating flight time” and “generating goodwill.” In other words, the FAA believes giving away your time and talent equates to compensation.
Under that interpretation, all instruction is for compensation, even if the student is your own spouse or child. You are required to log instruction in the student's logbook by 61.189(a), so you can't just decline to accept the accumulated flight time, because you've made a record of it and signed it. In practice, if you're getting "compensation", that means other things, too, such as:
1) every standard category aircraft I instruct in now needs 100 hour inspections, because it is being used commercially
2) insurance that covers only personal use (not commercial operations) may be invalid if you ever take a flight review in the aircraft
2) if the federal government says a CFI is getting "compensation", it likely needs to have a value determined and be reported to the IRS on a form 1099 or be declared on a 1040
and a host of other unforeseen consequences.
Worst of all, a LODA may protect you from violating some of the FARs about use of the aircraft, but does not exempt you from those other consequences.
Anything that makes a donation magically turn into compensation to the donor is just too twisted to comprehend.
LODA is a letter of deviation authority, which, as of July 12, is now required for owners of experimental aircraft to receive training in their aircraft from a CFI.There goes the Primary Category Certification of AutoGyro owner CFIs hoping to use the "certified" AutoGyro for training. Calling Primary Category "Type Certified" always bothered me as it is only a "Limited" Type certificate with a lot of restrictions that some have tried to gloss over in marketing material and one of the grey area ones with this clarification just put a whole bunch of gyroplane CFIs who own AutoGyro products they are using for training in the wrong with no way out as a LODA does not apply to them.
Hope FAA will address this but as of now they cannot train and charge for that training in those gyroplanes.
FAA - We are not happy till you are not happy
The correct way out for gyroplane training is SLSA gyroplanes like light sport airplanes and trikes have and some people are working in the background to try and make sure that happens in the next NPRM.
Yes I know that. LODA applies to Experimental aircraft. All CFI and owners of Primary Category AutoGyros have to get an Exemption (not a LODA). That's the point I was makingLODA is a letter of deviation authority, which, as of July 12, is now required for owners of experimental aircraft to receive training in their aircraft from a CFI.