Buying or selling an aircraft can create a legal nightmare for business owners who don’t anticipate the kinds of problems that can arise. You don’t want to wait until a dispute arises about the condition or history of an aircraft, or damage to an aircraft occurs that may or may not be covered by insurance. That is why it’s important that you retain legal representation from an experienced aviation attorney.
Resources For Financial Advisors
Risk Management – Is your Aircraft Operation in Legal & Regulatory Compliance?
Facts Change Risk can be introduced into a flight department by any change, whether it is new personnel, new aircraft, or a business change to the entities that own or operate the aircraft. Best practice is…
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Common Pitfalls in Aircraft Finance
Financing the purchase of an aircraft may seem the same as financing other business equipment, but there are key differences that, if disregarded, can cause major problems. Ownership and Operating Structure impact Aircraft Finance The ownership…
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Considering 135? New Federal Excise Tax Exemption May Tip the Scales
Whether to place a business jet on a Part 135 air carrier’s certificate involves balancing the added costs and potential inconveniences, against the potential gains. These gains can include lease revenue from the Part 135 operator…
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Should an LLC be Qualified to do Business in the Hangar Location?
Identify Where Your Entity is Formed and Where It Is (and should be) Qualified to do Business A Delaware LLC was formed solely to own the aircraft and you primarily hangar your aircraft in New York. …
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Is your Aircraft Sales Tax Plan Complete?
Long gone are the days when a buyer could purchase an aircraft in a sole purpose Delaware entity, close in Connecticut, and ignore sales tax and use tax in other states with little chance of being…
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Allocate the Costs of an Aircraft
When considering how to allocate the costs of an aircraft, owners must be aware of both tax and FAA requirements. Satisfying your tax and business goals, without addressing the FAA requirements, may result in compliance issues.…
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Aircraft Registration – Schedule an Annual Compliance Check
Were the annual reports timely filed with the Secretary of State for all entities in the chain of ownership of the aircraft? Were the annual reports timely filed with the Secretary of State for all entities…
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Federal Excise Tax (FET) & Managed Aircraft
FET on Business Aircraft Flights While Congress clarified some aspects of the applicability of the Federal Excise Tax (FET) to business aircraft, there are still instances where the tax applies to certain types of flights. The…
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Personal Use of Business Aircraft – Know the Rules
Personal Use of Company Aircraft If an executive of a publicly traded company uses a company aircraft for personal use, there are many factors to consider and several governmental agencies to satisfy. Although there is one…
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New Tax Law Could Have Positive Effect for Corporate Jets
A Puget Sound Business Journal article suggests that the new tax law may help increase business aircraft purchases. Buyers of new aircraft, and for the first time buyers of pre-owned aircraft as well, will be entitled…
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Corporate Restructuring – Before you Know It the Aircraft is Grounded
Many businesses, large and small, restructure their ownership, management and operations. This may occur for tax or economic reasons and the corporate jet is usually not a factor when making the restructuring decision. Industry Best Practices…
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