by Tom Alston, President of Aero Marine Tax Professionals
Amidst all the confusion and shock in the aircraft marketplace, a small group of people are continuing to provide up to the minute strategies about how to use the current financial situation to the benefit of individuals looking to make an aircraft purchase.
Some of the strategies discussed during the day were how to make sure your insurance premiums “go down” when replacement costs are going down. Additional discussions focused on “how to get financing when the banks won’t loan money.”
Yes, we are facing some situation when NOT buying makes sense. Sometimes it makes sense to let your deposit go on your pending purchase of a new aircraft because the street price of a qualified replacement saves you 10 times the amount of the deposit.
In the new paradigm of aircraft ownership, the myths of owning aircraft in LLCs are exploding as a dangerous tax scheme when the owner considers the new IRS rules related to depreciation and business expenses for aircraft.
The only sure thing about the future of aviation is that if you continue to operate the way you have in the past you may lose everything. Everyone in the aircraft industry including CPA’s, attorneys and all in the sales groups need to become aware of the mine filed being created by the financial situation that is prevailing around the globe. Additionally, this situation has created additional savings in California sales tax as the rates are now approaching 10%.
As prices continue to free fall, the finance industry will probably stay on the side lines. As tax revenues continue to decline, enforcement and new regulations will attack every taxpayer as if he is the last place on Earth to fund the latest government program.
You must arm yourself with the latest “inside” information in the Federal tax, aircraft sales tax, finance and insurance arena. Those who did this in the 1930s, prospered during a similar situation.
A repeat of this program will be held in conjunction with the Porsche Experience (formerly the Jet Preview trade shows) on May 21, 2009. It will be part of a full day of exhibits of aircraft and other products and services. The doors open at 10:00 am at Maguire Aviation at Van Nuys Airport. The seminars will start at 2:00 pm and they will run until 5:00 pm. For more info contact: email@example.com.