How do you co own a plane?

If you’re interested in co-owning a plane, you can go about it in one of two ways. Either you can form an official partnership or limited liability company with the person or people that will also own a part of the plane, or you can agree to a more informal arrangement with one or more pilots.

How does partial ownership of a plane work?

The Fractional Ownership Model Fractional ownership involves purchasing a share—typically a multiple of 1/16th—that will afford an allotment of occupied hours of fractional aircraft use per year plus a nominal amount of taxi time. You will also be required to sign a multi-year aircraft management agreement.

How do airplanes avoid sales tax?

Typical exemptions include:

1. Fly away exemption.
2. Purchase for resale (often under a dealer’s license, when taking an aircraft into inventory).
3. Purchase for resale when resale includes leasing.
4. Isolated and occasional sale exemption.

How much does fractional ownership of an airplane cost?

How Much Does Fractional Jet Ownership Cost? The cost of fractional jet ownership depends on the jet and the share size that you choose to go for. At the lower end of the spectrum, you’re looking at around $275,000, and this can go all the way up into the millions.

What is fractional home ownership?

Fractional ownership is a form of collaborative consumption where the overall cost of a property is split among a group of owners or users. Fractional ownership in real estate is typically arranged through a property management company that oversees the regular upkeep of the vacation home and restocking of food.

What is freedom of air in aviation?

Transit rights allow you to fly over a country without picking up passengers, and traffic rights allow you to pick up and drop off passengers in another country. The First Freedom of the Air allows for the right to fly over other countries to reach your destination.

How do NetJets work?

With a NetJets membership, you purchase an undivided interest in a specific aircraft and gain access to a fleet of more than 650 jets worldwide. Prices per share with the private aviation company vary depending on the type of jet you choose — light, mid-size or large-cabin — and how often you fly.

What is NetJets fractional ownership?

With NetJets fractional jet ownership, you purchase a portion, or Share, of a specific aircraft. And that Share equals a specific number of hours you can fly in that aircraft type—with the ability to upgrade or downgrade to any other jet in our fleet.

How do airplanes write off taxes?

To qualify for the deduction, you must use the airplane in the operations of your business. The amount that you can write off is determined by the price of the airplane and the percentage of time the plane is used for business purposes.

Are airplanes subject to property tax?

California Law Aircraft are considered tangible and are taxed as personal property. The California Revenue and Taxation Code requires the annual assessment of non-commercial aircraft as of January 1.