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.
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.
International aircraft transactions require a high level of preparation. To improve the success of an international sale, we’ve identified 6 expert tips for buying and selling an aircraft across international boundaries. The combination of common sense, advanced planning, and a valued tax advisor can return a turbulence-free sale.
For additional legal advice regarding international aircraft transactions, contact Kent Jackson or Michelle Wade, Jackson & Wade, LLC, 913-338-1700.
Very frequently a non-US citizen (at least according to the FAA’s definition of US Citizen) wants to register an Aircraft in the US. Sometimes owners unexpectedly fall into this category, such as where your corporation has a president who is not a US citizen, or your corporation is owned by individuals or entities who do not meet the FAA’s definition of US citizen. Or maybe you are a publicly traded corporation with no control over who owns your company. In any of these events, you may find yourself in a situation where the FAA says you cannot register an aircraft in the US, at least not in the traditional sense. One alternative route to registration often utilized is the “owner trust” whereby a bank or other entity serves as trustee for registration purposes, with the actual owner being the beneficiary of the trust. But for some, another alternative may provide a path to registration.
Looking for a replacement aircraft, and the right jet appears at the right prices? The next thing you know, someone has placed an offer letter in front of you and says it’s time to sign, or you could lose this great deal! Is it a great deal? How do you know? We know, you just want to fly – and thinking about all of the legal jargon just gives you a headache. This article will hopefully help you navigate the minefield of aircraft acquisition and ownership.
Earlier this month the FAA published a Notice of Proposed Policy Clarification for the Registration of Aircraft in Owner Trusts. The Notice focuses on aircraft registered in the name of trustees with non-U.S. citizen trustors/beneficiaries. Comments on the Notice are due to the FAA by March 31, 2012.
The FAA announced that the Block Aircraft Registration Request (BARR) program has been reinstated following the passage of an appropriations bill. Aircraft previously blocked under the Certified Security Concerns program will remain blocked. Aircraft operators who wish to have their aircraft blocked on flight tracking websites should contact the FAA at CertifiedSecurityConcern@faa.gov.