As an alternative to purchasing an aircraft , you can lease one.Leasing gives you the freedom of having a private jet at your disposal plus greater liquidity in the long term.
You might lease an entire jet or go into fractional ownership which is less expensive than purchasing a whole jet , but at the same time gives you the same luxury and convenience of full or fractional ownership.
- Fractional ownership has an additional benefit because the maintenance cost will be split by the number of owners.
- Fractional ownership is not affected by other owners' financial obligations.
- In addition it offers the benefits of private aviation without the burden of management responsibilities.
- Another important factor is that you will surely have some tax benefits.
Charter aviation expenses are deductible as travel expenses under Sec.162(a) and Regs. Sect1.162 (a) if they are adequately substamntiated as ordinary and necessary.
- A practice gaining more and more currency among traded corporations is creating a separate entity to purchase the jet and lease it back to the corporation.
In order to avoid double taxation , it is essential that a "fair rental value" lease between the entity and the corporation be negotiated.
This can be done by choosing the LLC (limited liability company) option.
In conclusion , the LLC members receive an ordinary loss on their individual income tax returns.
It can constitute an important cost-saving device for a company with substantial travel costs and can mitigate the problems employees face when taking commercial flights.
You might lease an entire jet or go into fractional ownership which is less expensive than purchasing a whole jet , but at the same time gives you the same luxury and convenience of full or fractional ownership.
- Fractional ownership has an additional benefit because the maintenance cost will be split by the number of owners.
- Fractional ownership is not affected by other owners' financial obligations.
- In addition it offers the benefits of private aviation without the burden of management responsibilities.
- Another important factor is that you will surely have some tax benefits.
Charter aviation expenses are deductible as travel expenses under Sec.162(a) and Regs. Sect1.162 (a) if they are adequately substamntiated as ordinary and necessary.
- A practice gaining more and more currency among traded corporations is creating a separate entity to purchase the jet and lease it back to the corporation.
In order to avoid double taxation , it is essential that a "fair rental value" lease between the entity and the corporation be negotiated.
This can be done by choosing the LLC (limited liability company) option.
In conclusion , the LLC members receive an ordinary loss on their individual income tax returns.
It can constitute an important cost-saving device for a company with substantial travel costs and can mitigate the problems employees face when taking commercial flights.
