I agree with the above. It doesn't matter if you rented the plane or you own the plane. If in any way you provided the aircraft and you're being paid to fly it, it is an illegal 135 operation.
Let me clarify. It doesn't matter where you got the airplane. You could have borrowed it, stole it, purchased it, or rented it. As long as you are providing the aircraft and are charging for your services, you are committing an unlawful operation pursuant to 14 CFR 135. If someone else provided the aircraft and hired you to fly it, that is legal.
For instruction purposes, the student must rent the aircraft. The student is paying you for your services. Of course, the aircraft in question has to have an annual and 100-hour inspection (or an approved progressive maintenance program) for it to be used for flight instruction for hire.
Okay, here's another situation (this is actually a real one):
I'm flying with some buddies to see my beloved Longhorns play the Huskers up in Lincoln this November. As it is, I'm renting a Duchess and my three buddies are splitting the cost evenly with me.
But lets say that they picked up the entire tab for the airplane. I didn't hold out for this gig, and I'd be going up there anyway with or without them. They just wanted to cover the whole cost since I'd be the guy flying. Is this 135?
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