This is bad news from the IRS

[landlover]

so if you own the airplane and have your own people in place to take care of the airplane, i.e. your own flight department. Do you avoid the tax?

 

[gret]

yup...if you structure it properly. Solving the tax problem doesn't mean you haven't created others. Having your own flight department may increase other costs which exceed the tax savings.

Meeting the Part 91 rules isn't easy in many cases. Just because you have not been caught yet, doesn't make it right. Cost allocations within headquarters can mess up a perfect Part 91 department and you may not even know it is happening.

 

[gunfyter]

All the more reason for the Fair Tax ....

But I still disagree on airline stock shareholders considered owners. They can not be sued if there is a crash with liabilities for the damages.

 

[hammer2]

Next thing you know Occupy Wall St will protesting at FBO near you.

Why not! Detroit city has homeless people wondering through the FBO, they'd fit in perfectly.

 

[AftCG182]

Why not! Detroit city has homeless people wondering through the FBO, they'd fit in perfectly.

More than one of my female F/O's has refused to leave DET property, even to get lunch...

 

[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.