The light sport flight instructor was providing flight instruction to the owner of the experimental, amateur-built, tailwheel-equipped light sport airplane. The airplane was equipped with side-by-side seating; the owner sat in the left seat and was the flying pilot, and the instructor sat in the right seat. They departed the home, non-towered airport and flew uneventfully to an airport with an operating air traffic control tower, where they practiced landings and takeoffs. They then returned to the home airport for additional landings and takeoffs. All portions of the flight through that point were uneventful. After returning to, and making at least one landing back at the home airport, the pilot was attempting a takeoff from runway 19. Either at or shortly after liftoff, the airplane was struck by an "unexpected wind gust," which resulted in a loss of directional control. The student pilot was unable to regain control, and the flight instructor did not physically intervene, before the airplane struck a hangar located about 270 feet from the runway centerline. The right wing sustained substantial damage when it struck the hangar. The airplane then passed between that hangar and an adjacent one. The flight instructor did not offer any explanation as to why he did not intervene. The measured wind at an airport located about 10 miles southwest of the accident airport was reported as 320 degrees at 8 knots about 37 minutes prior to the accident, and as 090 degrees at 3 knots about 23 minutes after the accident.

The pilot reported no preimpact mechanical malfunctions or failures with the airplane that would have precluded normal operation.