When scanning the SALE ads for pre-owned aircraft, go ahead and imagine yourself taking off from the runway but first consider the legal, financial and tax implications that differ between buying used versus new.
July 31st, 2014 by
Every aircraft owner is potentially liable for a wide variety of state and local taxes: sales and use tax, income or franchise tax, personal property tax and/or registration tax. To make matters worse these tax laws vary from state to state, and can apply in multiple states. The attached article addresses the common problems, general concepts and several myths relating to taxation of aircraft.
July 30th, 2014 by
When purchasing an aircraft, resist the temptation to guess on aircraft financing. Aircraft transactions and the legal financing documents are intricate, complex and contain many concealed restrictions. Such transactions should never be initiated without qualified, professional support.
July 24th, 2014 by
Corporate inversions implemented to reduce corporate taxes are a hot topic. Congress recently held hearings on the corporate tax code. Could this tax issue affect the corporate jet?
If your company is involved in a cross-border merger or acquisition, where over 25% of the company will be owned by individuals or entities which do not meet the FAA’s definition of US citizen, then you need to talk with your business aviation lawyer about whether your US-registered aircraft is still validly registered.
July 2nd, 2014 by
Thinking of operating an aircraft in a sole purpose company to minimize liability? Think again. One of the most frequestly violated FAA regulations is also one of the most well-known, but misinterpreted, provisions.
April 24th, 2014 by
Insuring your aircraft is substantially more complex than insuring your home or vehicle. Failing to understand insurance agreements is a surefire way to violate existing aircraft agreements or invalidate insurance coverage. Before you sign an insurance contract, make sure your insurance protects you.
April 9th, 2014 by
Thinking of operating an aircraft in a sole-purpose company to minimize liability? Think again. One of the most frequently-violated FAA regulations is found in one of the most well-known, but misinterpreted, provisions. As a general rule, Federal Aviation Regulation (FAR) Part 91 operators may not charge or accept reimbursement for flights. Owners and pilots forget that the regulation is not limited to unrelated third-parties.
February 17th, 2014 by
Aircraft transactions should never be initiated without support from a trusted advisor. When attempting to purchase and register aircraft, resist the temptation to guess how to complete the required FAA forms. The process is not intuitive and many of the requirements that will delay a closing are not contained in the regulations.