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August 20th, 2014 by Michelle M. Wade

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.

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July 31st, 2014 by Phil Crowther

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.

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http://www.nbaa.org/member/admin/taxes/state/StateTaxes.pdf

July 30th, 2014 by Kali M. Hague

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.

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July 24th, 2014 by Michelle M. Wade

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.

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July 2nd, 2014 by Kali M. Hague

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.

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June 25th, 2014 by Lori N. Edwards-McGee

When purchasing a new aircraft, or making a change in the operating structure, often the last items to be considered are the FAA Letters of Authorization (LOA) for operations. For years the operator specific nature of the LOAs has gone unnoticed by the FAA, and the business aviation industry. Ongoing confusion led to the persistant belief that a single LOA, or use of a charter operator’s authorizations, was sufficient for the aircraft. This assumption is inaccurate and aircraft owners and operators need to reevaluate their LOAs.

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May 30th, 2014 by Michelle M. Wade

Aviation is a highly regulated industry requiring constant monitoring. The FAA, IRS, State Department of Revenue and other governmental agencies all have laws, rules and regulations governing your aircraft and how it is owned and operated. Staying informed is critical. Focusing exclusively on taxes, on Federal Aviaiton Regulations (FARs) or on perceived liability shields creates problems.

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April 24th, 2014 by Kali M. Hague

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.

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April 9th, 2014 by Kali M. Hague

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.

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February 17th, 2014 by Lori N. Edwards-McGee

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.

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