Creating an aircraft ownership and operating structure is a complex undertaking that requires balancing several competing areas of law including federal income tax, state sales and use tax, Federal Aviation Regulations, federal excise tax and liability issues.
Although many aircraft owners have a financial and legal team advising them on their business operations, specialized assistance is usually needed to ensure the aircraft operating structure properly balances these competing areas of law to meet the owner’s priorities. For these owners I work with the existing team, providing advice and services specific to the client’s need. For other owners without a team in place, I provide a broader, more comprehensive scope of service.
I provide service on a traditional hourly fee basis. Fixed fee services can be provided upon request.
COMPREHENSIVE SERVICE EXAMPLE:
- Discussions with you and/or your professional advisors to learn about your intended aircraft use.
- Design of the aircraft ownership and operating structure and an explanation of the benefits, limitations and recordkeeping requirements.
- Implementation of the structure by forming the necessary entities and drafting the relevant legal documents such as leases and operating agreements.
- Oversight of the aircraft acquisition process, including negotiating and preparing the Aircraft Purchase Agreement and ensuring that the aircraft is properly registered.
- Assistance with recordkeeping requirements as needed throughout the year to ensure compliance with the substantiation requirements of the tax code.
- Analysis of flight logs to compute the impact of personal use.
- Preparation of any necessary tax or legal filings such as federal income tax & excise tax returns, state sales tax filings, and other required filings.
- Representation in IRS and state sales tax examinations.
- Assistance with other specific issues related to the aircraft such as:
- structuring and documenting aircraft partnership and co-ownership arrangements
- negotiating and preparing aircraft management agreements, including charter agreements
- tax free like-kind exchanges pursuant to IRC Section 1031
- financial forecasts based on projected usage
- sale analysis