Part 135 50% rule

[G4G5]

Not being familiar with Part 135 flying can someone please explain what happens if the owner charters out less then 50%.

 

[gret]

Not sure what exactly you're looking for, but in some cases, tax benefits (both income taxes and sales taxes) are lost. Depends on the state you're in and the way the tax people set up the a/c ownership and tax strategy implemented.

 

[gern_blanston]

Run your trips with the owner as '135 trips and you take care of the problem. Assuming a holding company actually 'owns' the airplane, there's no problem chartering your own airplane. There are a couple of hoops to jump through, but nothing major.

 

[gret]

FET gets expensive and it does add up. However, good alternative if you are close on the percentages.