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**tatermunk** · #8 March 18th 09, 11:07 PM

Quote:

Originally Posted by -b-

I'm sure you will correct me, however one is extremely tempted to surmise
that you have not been completely forthcoming with your "partners" as to
the profit motive in the venture, and who may believe they are buying
shares in an airplane.

In article ,
says...

I have a question about some of the legalities of what I am in the
process of doing. If anyone can point me in the right direction I
welcome and appreciate all opinions and advice.

I am in the process of purchasing a Cessna 210. I have 3 signed 1 year
lease agreements with pilots in my area. I have a $1200 deposit from
each pilot and when I reach 6 pilots I will purchase the aircraft. They
agree to $600 per month for a year for 10hrs per month. Any hours flown
over the 10hr allowance will be an additional $60 per hr. Insurance,
Maintenance, Hanger, etc. are all included.

For me, that covers the cost of the plane, hanger, insurance, and a
hefty maintenance reserve. However, I will/can still make a profit
depending on how I structure the maintenance reserve.

Is there any problem with the way I am structuring this? And other than
paying taxes and making sure my insurance is covered correctly... Is
there any problems with making a profit from this?

Thanks to anyone who can help.

--
tatermunk

It has been made abundantly clear that they are not a share owner. Their interest is not in ownership in any shape or form; only to lease the aircraft for the amount of time agreed upon. As if they were leasing an apartment, but shared with other tenants.

I hope that helps.

Thanks