Money » Taxes, Laws & Finance

September 7, 2015
(illustration: John Lewis)
Business aviation is regulated and watched by an alphabet soup of government agencies—FAA, IRS, DOT, SEC, state authorities and others—that don’t see eye-to-eye on key issues. A January 2015 federal District Court decision illuminates an excellent example: the disagreement between the IRS and FAA over who is providing transportation to whom.
July 5, 2015
Buyers who face long waits for a new airplane may consider leasing on a short-term basis. (Illustration: John Lewis)
An aircraft buyer waiting for delivery of his new Gulfstream G650 once complained that the manufacturer “wasn’t promoting instant gratification.” Who could blame him? The scheduled delivery was eight years away. With a wait like that if you don’t have another aircraft that you don’t mind flying for the better part of a decade, you might as well buy one to tide you over.
April 20, 2015
Illustration of pile of paperwork and business jet engine
Governmental agencies demand that aircraft owners maintain voluminous, detailed records. Specialized software can help.
February 24, 2015
Interest rates remain shockingly low today, so you can still lock in a highly attractive fixed rate. (Illustration: Fotolia)
Financing an aircraft means wading through fine print.
January 20, 2015
Even fractional shareowners can find themselves acting as indirect air carriers. (Illustration: John T. Lewis)
Some charter brokers have become overly creative in the methods they use to stimulate business, running afoul of Department of Transportation requirements in the process.
September 26, 2014
Time periods for leaving the state vary greatly. Kansas allows 10 days; Colorado gives you 120. The event that starts the clock varies greatly as well. (Illustration: John T. Lewis)
Sales taxes offer an easy way for states to raise revenue, and business jets are a favorite target.
September 1, 2014
One of the most pervasive myths about the taxation of business jets in the U.S. is that the owner isn’t entitled to any deductions unless more than 50 percent of the aircraft’s usage is in a trade or business. I hear this regularly from people who are contemplating a jet acquisition but worry that they won’t be able to take any tax deductions for it because less than half the usage will be business-related. Like many myths, this one contains a nugget of truth, as I’ll explain presently. But it’s incorrect to assume you can’t write off anything if your business use doesn’t exceed 50 percent.
August 10, 2014
Your aircraft represents a wonderful business tool but also one of your largest potential exposures to catastrophic loss—one that could wipe out what you have spent years building. The importance of properly insuring against such loss should be obvious. Here’s a look at the most critical coverage types and clauses.
July 8, 2014
Business jet static display. Photo: David McIntosh
Industry experts continue to blame lack of financing for the failure of business jet orders and sales to recover more rapidly since 2008. “Many sales are lost because prospective buyers can’t obtain financing or can’t obtain it on favorable terms,” says Andrew Bradley, president of global sales at Avjet Corporation. Bradley has even seen a bank require its client to buy a newer, significantly more expensive aircraft rather than provide financing for a slightly more than 10-year-old airplane of the same model. Indeed, relatively few business jets acquired last year were financed at all.
June 22, 2014
If two identical airplanes are priced the same and one of them has a damage history and the other doesn't, which one would you buy? (Illustration: John Lewis)
What’s the worst thing that can happen to your business jet? You might think the answer is an accident resulting in total loss, but it’s not. If a hangar roof collapses and destroys your aircraft, your insurance should enable you to replace it. On the other hand, if the airplane is only damaged in the incident, the insurer may opt to repair it, leaving you with a jet that operates just fine but has (gasp) damage history.




““It’s not so much a frenzy as it was before, but in the long term it’s going in the right direction.” ”

-Carey Matthews, general manager of Shanghai Hawker Pacific Business Aviation Service Centre at Hongqiao International Airport, on the business aviation market in China.