On Thu, 12 Feb 2004 16:05:03 -0500 "Ron Natalie" wrote:


"Dude" wrote in message ...
The key is YOU HAVE TO TAKE ALL YOUR REBATES AND SEND THEM TO THE LIEN
HOLDER! (The guy that taught me this was religious about it, and now so
am
I.)


Not sure I followed all this so I guess I will have to look into it some
more.


Talk to a new plane salesman, or tax accountant for more info. Its a great
time to be buying.

It's hard to follow because it is garbled. It's his opinion of what you should do, rather
than what is actually required by either the law or the lender. The issue is much the
same with any "artificial" depreciation. You can end up with more tax liability on a
sale than you have in equity. You're not really "upside down" as far as the lender is
concerned. If you default, they can take the plane and it is still worth more than what
you owe.


Sounds like more risk amelioration for the lenders.
I intend to do some research myself and/or talk to an accountant.



R. Hubbell