George Patterson wrote:
Then wouldn't he make even more if he bought the plane outright?
Most likely, no. Given that the cost of money is around 6% give or take a
few tenths, someone with that much money will be better off investing the
cash and financing the aircraft.
Once the aircraft purchase is made, the Feds will then allow this
individual to take accelerated depreciation (largest the first year, and
then a bit smaller until the aircraft is fully depreciated five years
later) on the purchase price of the aircraft, not the equity (or lack
thereof).
There are caveats, of course, but the strategy above will probably be the
most financially advantageous for someone with the cash to be able to cover
the complete purchase price of an aircraft.
--
Peter
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