YouTube | Advocate Consulting Legal Group, PLLC - The Aviation "TLC" Provider- Part 3

What is the NBAA small aircraft exemption?

Transcript:

FAA regulations allow certain types of flying for compensation to be conducted only on qualifying aircraft, i.e. fractional aircraft, multi-engine jets, and aircraft larger than 12,500 pounds gross takeoff weight. However, the National Business Aircraft Association small aircraft exemption provides a way for otherwise ineligible aircraft to also engage in these operations. The exemption is temporary, but the FAA has routinely reauthorized it each year. To use the exemption, one must join the NBAA,

What is the International Aircraft Registry?

Transcript:

Ownership interests in large US aircraft and aircraft engines should be recorded not only with the FAA but also with the international registry, also known as the Cape Town Registry. Cape Town Registration is a fully online process where both the seller and the buyer must first register as so called transacting user entities, like setting up an online account but with a diligence process that takes several days to complete.

What is the FAA flight company department rule?

Transcript:

One of the FAA’s greatest concerns in general aviation is arrangements where one party provides air transportation to another. A so-called flight department company exists when somebody establishes a company for the purpose of operating an aircraft not in furtherance of its own non-air transportation business, but instead to transport others, usually meaning the company’s owners or affiliated companies. From the FAA’s perspective that company would be acting as a commercial air carrier,

What is the difference between Federal and State tax requirements for aircraft acquisition and use?

Transcript:

When it comes to aircraft taxes, both federal and state must be taken into account. On the federal side, the most important are income tax which comes into play if you use your aircraft for business and write off the expenses, and federal excise tax, which applies if you sell air transportation. As to states, you must be [inaudible 00:00:25] of sales and use tax which may apply to the purchase price of the plane or to amounts received for leasing out the plane;

What is fractional jet ownership?

Transcript:

The term fractional refers to a specific type of aircraft co-ownership, where operations fall under federal aviation regulations, part ninety one, sub-part K. These involve a fractional management company that retains control over aircraft, but sells partial interests in them to fractional customers. These partial interests entitle the customers to use a certain number of flight hours on board aircraft the fractional company manages. Fractional companies generally pay a monthly fee,