If you are considering buying an aircraft, you have a lot of things to analyze and evaluate in order to make sure the purchase meets your needs, both from operational, as well as a financial, perspectives. One of the issues that will require your attention is the potential for tax consequences arising from your purchase. We all know the saying about “death and taxes……” And the latter is especially true with respect to buying an aircraft.
Depending upon the type and value of the aircraft you are purchasing, tax consequences could be significant. Fortunately, in many cases it is possible to plan your purchase in a way to minimize, and in some cases avoid, the tax you would otherwise have to pay on your purchase. For a discussion of the planning process and a few generic examples of tax planning for an aircraft purchase, please read my latest article on the topic: Tax Considerations When Buying An Aircraft.