I was an unmanned aircraft expert until I turned 16. Up until then, I built squadrons of balsa and tissue control-line airplanes and competed with them. But then I soloed in a Cessna 150, discovered girls and forgot about toy airplanes.
Now, toy airplanes are “Unmanned Aircraft Systems,” and the economic, social and legal implications continue to loom larger while the “aircraft” get smaller and smaller.
There are three key points to consider when negotiating an aircraft’s delivery condition. Don’t under estimate the time and legal expertise necessary for a successful transaction. A detailed description of individual delivery conditions ensures buyer protection and helps regate or resolve potential disputes.
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.
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.
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.