Legacy Bashfest - Bring it on!

[fokkerjet]

I'm off until the 27th. Been off since 4th. YMMV.

How's that Shrink been working out for you? Still looks like you have some issues that need working on

Keep repeating "...it's only a WSofD, it's only a WSofD, it's only a WSofD........." you'll work through this.......

 

[banned username 2]

To make LagacyDriver feel more at home, perhaps we should all Whistle him a tune???

WSofD... ROFLMAO!

 

[fokkerjet]

Do you think he has a "jungle gym" at home?

 

[banned username 2]

Do you think he has a "jungle jim" at home?

ROFLMAO!!!!!!

 

[AA717driver]

You guys are killin' me! Stop it! Almost spewed barbeque sauce through my nose... TC

WSoD's Forever!

 

[GVFlyer]

I find it hilarious that even with my typos... Even with using three percent off the average... I still break even and this assumes ZERO resale value in ten years (which is highly unlikely).

I know some basic math; for instance: 10% of 0 = 0. There are many reasons why in the real world, other than faulty math, that your example does not work. Most important among them are:

First, the differential in price between the Legacy and a Gulfstream that will whip the pants off the Jungle Jet is $6.35 million, not $13.5 million.

Second, no one actually sees that price differential as cash, because:

a. They use a 100% capitalized lease where there is no out of pocket expense - you just start making the lease payments.

- or -

b. They buy the airplane and use the Bonus Depreciation.

I bet you don't understand the Accelerated Depreciation of Capital Assets, so I'll explain:

Normally, one can depreciate an asset on a straight line along the expected life expectancy of the capital asset. For instance, if you bought a $1 million dollar piece of equipment that had a life expectancy of 5 years, you could expect to write down $200,000 per year.

Under the Accelerated Depreciation of Capital Assets Act, you can write off 50% of value in the first year.

So, if you were to buy this piece of equipment in 2005, you would get to write down $200,000 that first year. But under accelerated depreciation, you get a bonus in that you can write down 50% of the purchase price, and all you have to give up is half of the first year's usual depreciation.

What does that look like for your million-dollar piece of equipment? Instead of depreciating $200,000 in year one, your lucky accountant gets to write down $600,000: The 50% accelerated depreciation, plus half of the usual 20%.

There are other equally creative ways in which to purchase aircraft, but I wanted to give you the two most common so that you might understand why your example doesn't work.

Perhaps, you can now understand why I called your economic plan naive.

GV

 

[AcroChik]

Heavy Metal Zippers

"AcroChik. You own any leather?"

Got the skins, Fokker.

I'm also a scuba instructor. I've got rubber.

 

[AcroChik]

100% Capitalized Lease

Excellent explication, GV, as usual.

Now, how do I get your job which is probably one of the coolest in the biz.

 

[LegacyDriver]

I am glad you paid attention in managerial accounting.

The point being is a person is better off investing. It may be zero percent one year but the historical annualized ROR is still ten percent. Reinvestment in devalued stocks means when it comes time to grow again I have more slices of the pie to enjoy.

The facts are the facts. Over ten years ten percent annualized return. Period.

 

[NJAFracPilot]

I am glad you paid attention in managerial accounting.

The point being is a person is better off investing. It may be zero percent one year but the historical annualized ROR is still ten percent. Reinvestment in devalued stocks means when it comes time to grow again I have more slices of the pie to enjoy.

The facts are the facts. Over ten years ten percent annualized return. Period.

You just don't get it do you, dip$hit? Ten percent of nothing is nothing in one year, ten years or 20 years!

What the Gulfstream man said was you just start paying the lease - like $200,000 a month, $2.4 million a year for as long as you keep the airplane. No money down. Or some other fancy stuff where you can write off 60% of the $27 million price in the first year.

Sheesh!