Needing to move quickly to wrap up a great deal on the perfect aircraft doesn’t mean that you can’t, or shouldn’t, get professional advice. There are unique regulatory and tax requirements for aircraft. Failing to consider these requirements prior to closing may negatively impact your operational, business, and tax goals for the aircraft.
Earlier is Better, but it is Never Too Late
Seeking legal and tax advice on how to meet your goals for the aircraft works best early in the acquisition process. This lets you select a structure, and identify and resolve any potential issues, well in advance of closing, so that you can focus on the aircraft. However, it is never too late to seek advice! Depending on where you are in the acquisition process some options for addressing regulatory compliance or tax goals may no longer be available, but an experienced aviation attorney can identify the available options and assist in implementing the option you select.
Getting Advice Doesn’t Have to Mean Slowing Down the Deal
Some owners are hesitant to seek out advice from an aviation attorney fearing that it may slow the deal down, and cause them to lose the perfect aircraft in a seller’s market. This doesn’t have to be the case. The key is communication. Meeting the timeline for the deal is a business goal that may be just as important as meeting compliance and tax goals. There are often multiple approaches for achieving your goals, each with their own trade-offs. An experienced aviation attorney can walk you through the available options, so that you can select the approach that best fits your needs.
Failing to Seek Advice can be Costly
Having a structure that doesn’t match your goals can be costly. It can lead to loss of tax deductions, enforcement action, and invalidation of your insurance coverage. With this much on the line it pays to take the time to seek out professional advice.
Please contact Jetstream Aviation Law if we can assist you with addressing your aviation issues.
Lori N. McGee is a partner with the law firm of Jetstream Aviation Law and counsels clients on the acquisition, financing and operation of corporate jets operated under Part 91 and Part 135 of the Federal Aviation Regulations. Jetstream Aviation Law can be found at www.JetstreamLaw.com.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.