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.
I think you explained it better. I am an admitted anti-debt freak. I would
not have borrowed money for a plane at all unless I could con myself into it
being an "investment" because it was a business. Its working out well
though.
The bottom line is that I would never want to be in a position where an
unforseen event could leave me with an usecured debt to the bank or the IRS.
I will risk the perfect storm, but not the single hurricane