This is bad news from the IRS

[rajflyboy]

Gret

are you Cheatin on your taxes again?

 

[X-rated]

The argument about owning the plane doesn't work because if you own stock in an airline, you own a piece of the plane.

If owning common stock in an airline means you personally own a piece of the airline's airplanes, you should be able to write off a portion of the depreciation of "your airplanes" on your personal tax return.

Owning common stock in a company does not give you fractional ownership of the companies assets. If it did, airline's could sell every passenger one share of stock and issue a stock certificate as a mandatory ID/Frequent Flyer card. Bingo, no more pt 121. The airlines would all be Subpart K.

 

[SCT]

So can a fractional owner be sued (and of coarse anyone can be sued) for an accident on his/her plane when he/she was not on their plane?

 

[luckydog]

Absolutely! That's why most (not all) contract names are corporations, trusts, or end in LLC.

So can a fractional owner be sued (and of course anyone can be sued) for an accident on his/her plane when he/she was not on their plane?

 

[gret]

If owning common stock in an airline means you personally own a piece of the airline's airplanes, you should be able to write off a portion of the depreciation of "your airplanes" on your personal tax return.

Owning common stock in a company does not give you fractional ownership of the companies assets. If it did, airline's could sell every passenger one share of stock and issue a stock certificate as a mandatory ID/Frequent Flyer card. Bingo, no more pt 121. The airlines would all be Subpart K.

You could if it was a pass thru entity for tax purposes such as a partnership or LLC. An airline is a "C corp" and the depreciation and taxes are handled at the corporate level, it does not pass thru to the shareholders.

Frac owners (via their special purpose entities) take title in a specific aircraft even though they may not fly on that specific a/c. That is the difference, which is form over substance, with an airline shareholder.

 

[gret]

Absolutely! That's why most (not all) contract names are corporations, trusts, or end in LLC.

100% correct.

Regarding legal liability for an incident, it is hard to pierce the corporate veil and that is why the individual owning the a/c uses a LLC or other similar entity. Practically speaking, the plaintiffs are going to pursue the frac company as they are the ones operating the a/c.

 

[rajflyboy]

Gret is just too smart. Too too smart.

 

[gret]

Not sure you mean that, or even what you mean...just dangerous with enough information to get me and others in trouble...I can work a computer keyboard and that alone is dangerous...

 

[jonjuan]

100% correct.

Regarding legal liability for an incident, it is hard to pierce the corporate veil and that is why the individual owning the a/c uses a LLC or other similar entity. Practically speaking, the plaintiffs are going to pursue the frac company as they are the ones operating the a/c.

They'll pursue the entity with the deepest pockets (and not just one entity). Keep up, grasshopper.

 

[transpac]

You could if it was a pass thru entity for tax purposes such as a partnership or LLC. An airline is a "C corp" and the depreciation and taxes are handled at the corporate level, it does not pass thru to the shareholders.

Frac owners (via their special purpose entities) take title in a specific aircraft even though they may not fly on that specific a/c. That is the difference, which is form over substance, with an airline shareholder.

I wonder if the Frax Company providing transportation in an N# that's not partially owned by the share owner enters into the IRS's thinking?

 

[rajflyboy]

Not sure you mean that, or even what you mean...just dangerous with enough information to get me and others in trouble...I can work a computer keyboard and that alone is dangerous...

You ain't the golden of goose's now are you?