That's Duncans......I think they paint them that way as advertising for their paint shop capabilities.

They've another that looks like a corn cob.....

And one that looks like a blue print.

I choose this forum to bring this deal to people who know me and jets.

Scenario: Local doc own (has owned for 20 year) an early 80’s CE550. He is in his early 70:passes spw at FSI just fine. He flies 50 hours a year. I fly 150.: He says when he retires he won’t be able to afford the jet. Ok. I suppose I could buy it. But valuation is hard cap gains is significant. So if he sells for affordability he probably clear $150 but loses access to the plane. Not ideal.

Bit of a reverse mortgage analog...Solution: he gives me the jet. I assume all costs except interest on equity. He trades the equity for the right to fly the plane until he can’t pass the test and even then we hook him up with a contract guy on his nickel.

I get the aircraft up to standards. P and I. Dual txi. Dual 750 already installed. Already WAAS GFC700. Already ads-b. Fastest II I have ever flown. 365 cruise. Most barely make 350

i take the mainteance risk. Own the plane...make it special with capex he didn’t get. But he gets the benefit of it. And he flies it his 50-100 hours a year for gas, forever.that deal is worth more than maybe clearing 150 post tax?

Is this a new model? Sort of a reverse mortgage similarity. Lease buy back too.

Where am I wrong. More importantly how do I correct it?

What guarantee do you provide that he can fly his 50 hours?

Andrew

What guarantee do you provide that he can fly his 50 hours?

Andrew

So say he takes the plane to Florida for two weeks at a time, how does that work for you?

OK...so we have to make sure that we stoppers on some time of extended usage. ALso what is the priority if there is conflicting schedules. GOt it.

How generous you are or need to be has to be driven by what your situation is for alternatives... Assuming you have good ones, you could give him a certain number of priority cards so he can be sure to be able to use the plane for some number of uses/time away from base. After those are used up, priority for the year (quarter?) is yours...

MH, title on the plane stay with him or be transferred to you for $1 and other considerations?

He have the plane in an LLC? I assume he has the plane fully depreciated and would have depreciation recapture if he sold it. That $1 transaction may not pass IRS review if he is audited.

You paying all costs of insuring an aging pilot?

One place you said he gets 50 hours, another 50-100 hours. Big difference. You know if his mission timing is compatible with yours? Weekdays, weekends, winter, summer? Think about capping days he has control of the plane annually or quarterly as well as hours. You need an agreed scheduling system.

How many hours on the engines?

Some things to consider:

You'll definitely need some sort of agreement on scheduling conflicts. Do you have any idea how his intended use aligns with yours?

Also you mentioned that you'd be responsible for all costs except fuel for his use. Does that include any extra insurance premium costs? As he ages and/or flies less the premiums could skyrocket.

How will you handle any maintenance that's required when he has the ship away from home? Will you require him to let you handle arrangements for anything above a specified cost? Is he willing to be responsible for moving the airplane to a preferred shop?

If he hangs it up 6 months from now will he get anything more from you or is he willing to take that risk entirely on his own?

Do you intend to lease the plane to anyone else and does your agreement allow that?

has to be a way to make this work for you but too many pitfalls for both on forum IMHO. you need to contact an aviation specific atty first and accountant also versed in aviation.

may come a time you don't want plane too before he's done/dead. what happens if whirley thingee coughs and cost more than $value plane. i know there are time available engines out there but? what are his normal trip lengths, nm, etc.

good luck sounds interesting! typing with left hand...

What sort of income tax hit do you take? IRS won't accept that someone gave you a free jet. How much in legals and accounting to get this all sorted out?

What about non-scheduled events? Rainy evening and he puts a wheel off the taxiway on a muddy threshold. Plane is stuck and your phone rings. What now?

What sort of income tax hit do you take? IRS won't accept that someone gave you a free jet. How much in legals and accounting to get this all sorted out?

If it's not a gift and there's an hourly value, will it be interpreted as a commercial operation in that Mark is providing a plane for hire?