"maybe at a profit"
There is no profit; however this should not be confused with taxable gain. If a plane's (or fraction's) value does not depreciate as quickly as it is depreciated for income tax purposes (and in most cases it will not), you may have a taxable gain on the sale of the interest (and hence the big market in tax free exchanges). This is a tax beast. for example, I buy a share for $1MM and in 5 years have it depreciated for tax purposes to $500K,and then sell it for $650K, I do not have a profit in the normal sense; but from an IRS perspective I do have a taxable gain of $150K.
I do not know of anyone who has sold a fractional share (from a major fractional) for more than they paid for it.
There is no profit; however this should not be confused with taxable gain. If a plane's (or fraction's) value does not depreciate as quickly as it is depreciated for income tax purposes (and in most cases it will not), you may have a taxable gain on the sale of the interest (and hence the big market in tax free exchanges). This is a tax beast. for example, I buy a share for $1MM and in 5 years have it depreciated for tax purposes to $500K,and then sell it for $650K, I do not have a profit in the normal sense; but from an IRS perspective I do have a taxable gain of $150K.
I do not know of anyone who has sold a fractional share (from a major fractional) for more than they paid for it.
