Cessna 210 Lease or Flight Club?

Originally Posted by xyzzy

On Mar 16, 1:05*pm, tatermunk
wrote:
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.


I wouldn't touch that with a 10 foot pole without consulting with an
aviation attorney.

If you are an AOPA legal plan member, you can get a referral to one
and a few hours for free (I forget how many).

It would be a wise precaution.

Thank you, good advice and I will follow it.