I saw a chart recently which listed all of the certificate holders along with their ratings. I can't recall where I saw it, or I'd post it here. But the numbers (if I'm recalling correctly) were essentially very few with the recreational certificate, only about 1-2%, roughly 10% with a sport pilot certificate, and everyone else had a pilot certificate of some sort, private, commercial, or ATP. I remember being somewhat surprised how many had their IRs, about half of all certificate holders.
My reasoning for poo-poohing the sport pilot certificate (same reason for recreational) is that EA specified in his first post that he "...would like to fly for fun first and then after getting some time under my belt get a job flying." While it may be possible to "get a job flying" as a sport pilot-only CFI, there are so few outfits around the country which rent or instruct in light sport aircraft that the chances of getting a job flying without going through the traditional route of private, instrument rating, commercial, etc. are pretty minimal.
Also, my observation is that the vast majority of pilots
who stick with flying (not all do, obviously) want to go farther than just their private--it whets their desire for more skills, better utility, more opportunities. The same is probably true for sport pilots, especially when they realize that in addition to the restrictive weight limits, they can't do some of the basic things that private pilots can, like take their families for a ride (1 passenger only); or fly above 10,000' MSL; or fly at night; or fly in B, C, or D airspace (i.e., where there are towered airports) without additional training; or fly on instruments; or fly in another country (no crossing the border into Canada or Mexico or across to the Bahamas).
Not arguing with Soy, and not saying he's wrong, but before running down a path that involves trying to save money by contemplating the use of tax benefits, it's essential to get proactive advice from a good CPA, preferably one who has some knowledge about pilot certificates and the requirements for each one. Although I never claimed to give tax advice, I took several courses, both in school and later as continuing education, which helped me to see red flags that should involve good accountants, so that whenever I had clients who were embarking on some activity that involved taxes, I could advise them in the strongest terms that they needed good tax advice from a CPA. This path has red flags.
Meanwhile, EA, here's a link to the FAA's latest issue of "Safety Briefing", which has some of the answers you're looking for. It comes out bi-monthly, so you might want to get on the e-mailing list, too.
http://www.faa.gov/news/safety_briefing ... ct2016.pdfCary