new plane owner wanting to reduce costs right away...

On 17 May 2006 19:57:37 -0700, "Robert M. Gary"
wrote in .com::

This is not true in the state of California. (I called the FTB to
verify this).

2. Each time a 'share' in the aircraft is sold it is subject to
state personal property/use tax, unlike the transfer of corporate
stock certificates.


Which is not true, the state tax on the purchase of a partnership
share resulting in a name change on the FAA Certificate of
Registration, or the fact that there is no state use-tax on the
exchange of corporate shares?

Which is not true, the state tax on the purchase of a partnership
share resulting in a name change on the FAA Certificate of
Registration,

If less than a majority of the shares or partnership status changes
there is no state sales tax. You could actually buy a plane w/o sales
tax by first putting your name on the reg with the previous owner and
then later taking him off in two transactions. They equated it to
buying stock on the stock market and not having to pay state sales tax.
That was what the FTB rep said.

-Robert

On 18 May 2006 08:59:28 -0700, "Robert M. Gary"
wrote in .com::

Which is not true, the state tax on the purchase of a partnership
share resulting in a name change on the FAA Certificate of
Registration,

If less than a majority of the shares or partnership status changes
there is no state sales tax.

I wasn't aware of that.

After a search of the California Revenue and Taxation Code, I am
unable to locate the statute supporting that contention.

You could actually buy a plane w/o sales
tax by first putting your name on the reg with the previous owner and
then later taking him off in two transactions. They equated it to
buying stock on the stock market and not having to pay state sales tax.
That was what the FTB rep said.

-Robert

That is interesting indeed.

This was the only statute pertinent to this topic my research
discovered:


http://www.leginfo.ca.gov/cgi-bin/wa...ion=re trieve
24942. (a) No gain or loss shall be recognized to a corporation
on the receipt of money or other property in exchange for stock
(including treasury stock) of that corporation.

FLAV8R wrote:
Ownership is nice, but renting is worry free.

Apparently, you haven't rented the same planes I've rented.

The last plane I rented resulted in an emergency landing at an Air
Force Base, where MP's came out to greet us on the runway, so they
could pat us down and search the plane. They were actually quite
understanding and cordial, but I think the machine guns hanging over
their shoulders make it difficult to pat people down! ;-)

That same plane now sits with a crumpled fuselage, half the tail torn
off, and the spinner caved in, because it flipped upside down in a wind
storm! It's been sitting there for nearly two years because it wasn't
insured when the incident occured. (The owners thought it would be
cost effective to cancel the insurance policy, temporarily, while they
had work done, because they knew it would be out of service for a
couple of months! Ouch!!!)


Best Regards,
Todd