Aircraft Financing

Peter R. wrote:

No, I was referring to the accelerated depreciation that the Fed currently
allows. I wasn't even thinking about deducting the interest on the loans.

Then wouldn't he make even more if he bought the plane outright?

George Patterson
Give a person a fish and you feed him for a day; teach a person to
use the Internet and he won't bother you for weeks.

"At least one very wealthy person I know finances his aircraft because
owning an aircraft is a large tax deduction for him "

Only if you can consider it a business expense.

"Must be nice to have so much money one wouldn't have to finance"

Must be nice to have so much money one can afford to make the monthly
loan payments AND pay the maintenance and other costs to keep the
aircraft. My plane costs me $500/month just to sit on the ground (base
annual, insurance, property taxes, tie down, etc) . That doesn't even
include fixing anything that may break as a result of flying.

-Robert

You'd probably be better off refinancing your house and taking the cash
out.

I don't know how anyone would have so much money to pay cash for a plane
that is worth very much. I'm not talking about a 20k 152 either. Our
"J" model Mooney was over 100k and my partner (a brain surgeon with a
lot more money than me) and I decided to finance 90% of our purchase. To
me the 6% interest on the financed money can be put to better use
elsewhere.

You have a partner in your "F" too, if I remember correctly?

Jon Kraus
'79 201
4443H @ TYQ


Robert M. Gary wrote:
"Must be nice to have so much money one wouldn't have to finance"

Must be nice to have so much money one can afford to make the monthly
loan payments AND pay the maintenance and other costs to keep the
aircraft. My plane costs me $500/month just to sit on the ground (base
annual, insurance, property taxes, tie down, etc) . That doesn't even
include fixing anything that may break as a result of flying.

-Robert

We were happy with NAFCO (National Aircraft Finance Company) If you have
questions you can call them at 800-999-3712 or email Bill Leckie -
. No associated interest just happy with the process.
We financed through
Citizens National Bank
390 Main St
Laurel, MD 20707-4199

We got 6% last October so I don't know what it is right now. Good luck
with your purchase. Get a THROUGH pre-buy and then put 10% of the
purchase price back for repairs in the first year.

Jon Kraus
'79 Mooney 201
4443H @ TYQ


wrote:

I'm debating the purchase of a plane and I was wondering what the
current rates are that anyone has gotten for financing on an aircraft
for a loan amount of $50-60K for either a 5, 7, or 10 year term. I know
that AOPA can quote this, and I'll be calling them tomorrow during
business hours. However I wanted to see what other people had found by
shopping around.

Thanks,
Eric

George Patterson wrote:

Then wouldn't he make even more if he bought the plane outright?

Most likely, no. Given that the cost of money is around 6% give or take a
few tenths, someone with that much money will be better off investing the
cash and financing the aircraft.

Once the aircraft purchase is made, the Feds will then allow this
individual to take accelerated depreciation (largest the first year, and
then a bit smaller until the aircraft is fully depreciated five years
later) on the purchase price of the aircraft, not the equity (or lack
thereof).

There are caveats, of course, but the strategy above will probably be the
most financially advantageous for someone with the cash to be able to cover
the complete purchase price of an aircraft.

--
Peter
























----== Posted via Newsfeeds.Com - Unlimited-Uncensored-Secure Usenet News==----
http://www.newsfeeds.com The #1 Newsgroup Service in the World! 120,000+ Newsgroups
----= East and West-Coast Server Farms - Total Privacy via Encryption =----

"Robert M. Gary" wrote:

"At least one very wealthy person I know finances his aircraft because
owning an aircraft is a large tax deduction for him "

Only if you can consider it a business expense.

Someone with enough money to purchase a high performance aircraft for cash
would have tax accounting resources at his/her disposal to be able to
structure the purchase as a business purchase.

--
Peter
























----== Posted via Newsfeeds.Com - Unlimited-Uncensored-Secure Usenet News==----
http://www.newsfeeds.com The #1 Newsgroup Service in the World! 120,000+ Newsgroups
----= East and West-Coast Server Farms - Total Privacy via Encryption =----

I've got plenty of resources but I have yet to find a legit way to call my
flying a business or create a business that I could use the pane for. I
wanted to do a rent a wreck at FBO's w/o a courtesy car but I can't find
insurance.

Victor J. (Jim) Osborne, Jr.


Someone with enough money to purchase a high performance aircraft for cash
would have tax accounting resources at his/her disposal to be able to
structure the purchase as a business purchase.
--
Peter

That's what I do. The money works better in the equities market & I don't
have to pay capital gains to take it out and use as a payment. Anyone who
says an aircraft appreciates in value enough to pay for the difference is
fooling themselves.

Thx, {|;-)

Victor J. (Jim) Osborne, Jr.

"Nathan Young" wrote in message
...
On 31 Aug 2005 15:31:59 -0700, "
wrote:

If you have access to a line of credit on your home, look into using
that - better rates and the interest will be tax deductible.

-Nathan