Most efficient procedure to purchase an LSA in SoCal.

[bluesideup]

Hi everyone.
I there a good / efficient procedure to purchase an LSA ~120k from an LLC and prefer to keep it in a hangar or outside around KSNA ,KFUL.. area.
No plans for tax deduction, depreciation.... unless there is a simple way to do it on personal ownership, but would like to save some tax in the process.
Buy the LLC?
I looked at AOPA and found nothing specific.
Thank you.

 

[FPK1]

Hi everyone.
I there a good / efficient procedure to purchase an LSA ~120k from an LLC and prefer to keep it in a hangar or outside around KSNA ,KFUL.. area.
No plans for tax deduction, depreciation.... unless there is a simple way to do it on personal ownership, but would like to save some tax in the process.
Buy the LLC?
I looked at AOPA and found nothing specific.
Thank you.

I don't think there are any tie downs or hangers available at, or around, KSNA, KFUL...

I don't think I would buy the LLC. I would probably create my own LLC and then buy it in that name. If you're not going to use it for business, can you legally buy it under a LLC? So maybe you buy it for the business but just don't ever make any money from it? You probably should talk to a tax professional.

 

[pilotrick]

If you buy the LLC you will not have to pay the use tax. You will still be on the hook for property tax.

 

[midlifeflyer]

I would expect AOPA to stay away from any advice on that question. Buying an LLC can avoid some things but there are downsides. For example, a quick check tells me there's an annual $800 franchise fee for LLCs in California. That doesn't make a lot of sense for a sole owner absent some other reason for segregating the asset (see your business/estate/financial planning attorney about that).

Another potential downside is, when you buy an LLC, you also buy the LLC's liabilities, known or unknown. That's why, in the business world, when one company buys another, it's often structured as a purchase of assets, not the company. There may be none, but light aircraft LLCs are often run very loosely. File and forget. Are you equipped to do the due diligence to find out?

 

[midlifeflyer]

If you're not going to use it for business, can you legally buy it under a LLC?

i can't say for sure about every state, but in most, yes. Many light aircraft are owned by LLCs. It's an extremely common form of group ownership.

 

[PaulMillner]

Hi everyone.
I there a good / efficient procedure to purchase an LSA ~120k from an LLC and prefer to keep it in a hangar or outside around KSNA ,KFUL.. area.
No plans for tax deduction, depreciation.... unless there is a simple way to do it on personal ownership, but would like to save some tax in the process.
Buy the LLC?
I looked at AOPA and found nothing specific.
Thank you.

Call these guys, free consult, avoid 10% use tax if possible. (It usually is possible...)

www.aeromarinetaxpros.com

Paul

 

[bluesideup]

Thanks everyone for the feedback.
The only hope for some hangar space may be to find someone and share space, very difficult around the area.
LLC may be too difficult to deal with a single owner, maybe he can get a partner.