Territorial Limitations - Aviation Insurance & Risk Management ...
Territorial Limitations - Aviation Insurance & Risk Management ... Territorial Limitations - Aviation Insurance & Risk Management ...
AIRCRAFT TAX PLANNING and potential realization of tax benefi ts from any previously suspended losses. The table below illustrates a typical gain calculation without consideration of recapture taxation. The example assumes the taxpayer purchased the aircraft for $625,000 and had in prior years depreciated $499,000 of that original cost. Associated with the sale, the taxpayer expended $50,000 in listing fees, commissions, and other selling expenses. Tax-Free Exchange If you are selling your aircraft in order to purchase a different aircraft, you may be able to structure the transaction in what is known as a tax-free exchange. The tax code under Section 1031 allows taxpayers to exchange like-kind business property without recognizing any gain at the time of the exchange. Generally, the taxpayer has 45 days after the sale of the original aircraft in which to identify the replacement aircraft. Once identifi ed, there is a 180-day window from the time of the sale in which to close on the replacement aircraft. These rules must be followed precisely. The correct structuring of a tax-free exchange can be complex. Taxpayers are encouraged to seek professional advice well in advance of the transaction. � 28 Aviation Insurance & Risk Management Up-To-Date News & Feature Articles For Turbine and Hi-Performance Piston Twin Operators • Cheyenne • Conquest • King Air • Mitsubishi MU-2 • Navajo • Cessna 300 and 400 Pressurized Twins The Jemar Company Aviation Publications Post Office Box 460 Valdosta, GA 31603 Tel: 229.244.1568 Fax: 229.244.2604 email: jemops@att.net website: www.opsgroups.com
Our Professional Sales Services Include… • Aircraft Sales • Acquisitions / Buyer’s Agent • Brokerage • Inventory Acquisitions • Trade-in Acceptance • Consulting • Oversight • Valuation • Market Analysis • Financing and Insurance Assistance We are currently seeking brokerage and buy opportunities on Citation ISP, Lear 35A, Westwind I/II, and King Air 200/300. Corporate Flight Management, Inc. is a full service FBO with locations in Nashville and Smyrna, TN. For 23 years we’ve been providing exceptional service to the aviation community. In addition to our exceptional sales and acquisition services we offer maintenance (FAA repair station), 24-hour charter service with our 20-aircraft fl eet, fuel sales, hangar and tie-down storage, and fl ight training (Wings of Eagles Flight School). Corporate Flight Management, Inc. Smyrna Airport (MQY) Smyrna, Tennessee Just 12 miles SE of Nashville CFM Aircraft Sales sales@fl ycfm.com www.fl ycfm.com Why Trust CFM for the Marketing and Sale of your aircraft? With over 20 years of excellent service and sales results, our sales professionals are experienced to handle all aspects of your aircraft transaction from the simplest to the most complicated. Our focus is turbo-props and small to medium jets. Give us a call and put us to the test. Like so many others before, we think you’ll be pleased! What our clients are saying…. “I have bought and sold fi ve airplanes in the past eighteen years. My recent sale of my aircraft handled by Blake Tumbleson was the smoothest transaction of them all.” Terry Clyne, President Continental Machinery Movers, Inc. “Your expertise and friendly approach has allowed me to put my focus on growing my business knowing that my aviation needs are in great hands.” Richard Headrick, Chairman and CEO Headrick Companies “I found Blake to be extremely professional and very responsive in all aspects of this transaction…It was a pleasure working with him and I would certainly recommend his services to anyone interested in acquiring or selling an aircraft.” phone Dennis W. Wesney, CFO North West Holdings, LLC 615.220.1721
- Page 1 and 2: volume 6 / winter 2006 - $3.95 Terr
- Page 3 and 4: Aviation Insurance & Risk Managemen
- Page 6 and 7: To date, we have devoted Aviation I
- Page 8 and 9: Thomas H. Chappell Tom Chappell is
- Page 10 and 11: writers will sell this certifi cate
- Page 12 and 13: Central and South America or Wester
- Page 14 and 15: Louis M. Meiners, Jr. Louis M. Mein
- Page 16 and 17: Charles W. Clarkson Chuck Clarkson
- Page 18 and 19: Work Comp coverage. You want to tak
- Page 20 and 21: Brent Anderson Over the course of h
- Page 23 and 24: 615.435.8319 Complimentary and subs
- Page 25 and 26: Tax Depreciation Methods AIRCRAFT T
- Page 27: Upgrades and Overhauls AIRCRAFT TAX
AIRCRAFT TAX PLANNING<br />
and potential realization of tax benefi ts from any previously suspended losses.<br />
The table below illustrates a typical gain calculation without consideration of<br />
recapture taxation. The example assumes the taxpayer purchased the aircraft<br />
for $625,000 and had in prior years depreciated $499,000 of that original<br />
cost. Associated with the sale, the taxpayer expended $50,000 in listing fees,<br />
commissions, and other selling expenses.<br />
Tax-Free Exchange<br />
If you are selling your aircraft in order to purchase a different aircraft, you may be<br />
able to structure the transaction in what is known as a tax-free exchange. The<br />
tax code under Section 1031 allows taxpayers to exchange like-kind business<br />
property without recognizing any gain at the time of the exchange. Generally,<br />
the taxpayer has 45 days after the sale of the original aircraft in which to identify<br />
the replacement aircraft. Once identifi ed, there is a 180-day window from the<br />
time of the sale in which to close on the replacement aircraft. These rules<br />
must be followed precisely. The correct structuring of a tax-free exchange can<br />
be complex. Taxpayers are encouraged to seek professional advice well in<br />
advance of the transaction. �<br />
28 <strong>Aviation</strong> <strong>Insurance</strong> & <strong>Risk</strong> <strong>Management</strong><br />
Up-To-Date<br />
News & Feature<br />
Articles For Turbine<br />
and<br />
Hi-Performance Piston<br />
Twin Operators<br />
• Cheyenne<br />
• Conquest<br />
• King Air<br />
• Mitsubishi MU-2<br />
• Navajo<br />
• Cessna 300 and<br />
400 Pressurized Twins<br />
The Jemar Company<br />
<strong>Aviation</strong> Publications<br />
Post Office Box 460<br />
Valdosta, GA 31603<br />
Tel: 229.244.1568<br />
Fax: 229.244.2604<br />
email: jemops@att.net<br />
website: www.opsgroups.com
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