1st time plane buyer, needing advice.

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Tim Huff

Filing Flight Plan
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TimHuff
I am in the market to purchase my first plane, my question for this forum is, where should I register this plane? I’m currently in Kentucky, will be leasing it to a flight school in West Virginia and will be setting this up as a business and not as a personal use plane?

Thanks in advance for your help!
 
Kentucky's breaks won't apply to you if you're using it in a flight training business. WV varies from county to county about your tax liability. Which airport?

I hope you understand that leasebacks are fraught with perils. I've been on both sides (both as a club manager hunting leasebacks and as an owner leasing my plane). It's good that you are already thinking it as a business. Remember this is not your personal plane anymore. You get in line behind everybody else.
 
I’ve not ever heard of a leaseback that turns a profit. Only those that MIGHT defray the cost of ownership a bit.
 
Consult a tax attorney before making your decision.
 
A lot of good information in the thread you linked.

Thanks for the replies!
 
If you can live with a rental you can't own and fly it as cheap as renting, unless you plan on living in your plane and 100hr or more a year. And that is if nothing bad like a $40K engine change or more.
 
It depends on the flight school. AFAIK, my local flight school owns their aircraft.
 
dans2992 said:
I’ve not ever heard of a leaseback that turns a profit. Only those that MIGHT defray the cost of ownership a bit.
Click to expand...
Leasebacks can turn a profit, but there are many pitfalls that can make it a disaster. The key is that it is a business. To cover the overhead you have to have the aircraft rented. To have it rented it has to be available. This means: you have to keep maintenance in line, you have to make sure that you are not blocking it out for personal use, etc...

What leasebacks are NOT is a way to decrease costs of your personal use. If you want to do that, pick up a partner or two.
 
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