Aircraft Financing

Well Robert .. not everyone is rich and can afford to just plop
down the money. Without financing many would not own a plane. If
you can afford to that's great. Don't criticize those less fortunate.



"Robert M. Gary" wrote in message
oups.com...
Its amazing to me that some people finance their personal aircraft. The
monthly costs associated with owning an aircraft are so massive I can't
imaging servicing a loan on top of that.

-Robert, M20F

"Peter R." wrote in message
...
Chris Schmelzer wrote:

In article .com,
"Robert M. Gary" wrote:

Its amazing to me that some people finance their personal aircraft. The
monthly costs associated with owning an aircraft are so massive I can't
imaging servicing a loan on top of that.

-Robert, M20F

Forgive me for not being rich!

Robert indicated that he *cannot* imagine servicing a loan on top of
monthly ownership costs. Doesn't come across as rich to me. rimshot

At least one very wealthy person I know finances his aircraft because
owning an aircraft is a large tax deduction for him (in the US) and
because
he is able to receive a larger return on his current capital than the cost
of financing.

I think he (Chris ?) was confusing "personal aircraft" with one owned just
for pleasure trips, not for business where it's a most valuable tool.


--
Matt
---------------------
Matthew W. Barrow
Site-Fill Homes, LLC.
Montrose, CO

"You have a partner in your "F" too, if I remember correctly?"

Yes, I do have a partner for similar reasons. Although I could pay cash
for my plane I thought it would be better to keep more of my money in
the market. Besides, unless you fly at least 100 hours per year, it
just doesn't make sense to own by yourself and its not good for the
plane. My partner and I paid cash $80K.

Jon, are you on the Mooney list now? You should check out aviating.com
to sign up for either the general Mooney list or the tech list. Both
are VERY helpful to Mooney owners.
-Robert

"Someone with enough money to purchase a high performance aircraft for
cash
would have tax accounting resources at his/her disposal to be able to
structure the purchase as a business purchase. "

I do have enough money to pay cash for a plane but I still can't make
it a business expense. My business travel schedule doesn't work well
for Mooney flying. I would have to actually make business trips in the
Mooney. As I recall, you just document that 51% of your trips for
business related. I did incorporate my Mooney but the corp doesn't
generate any cash (other than what I put in every month ).

-Robert

Yes I am subscribed to the Mooney list... It has an unbelievable amount
of great information for Mooney drivers like us... I think that is how I
knew you had a partner...

Jon Kraus
'79 Mooney 201
4443H @ TYQ

Robert M. Gary wrote:
"You have a partner in your "F" too, if I remember correctly?"

Yes, I do have a partner for similar reasons. Although I could pay cash
for my plane I thought it would be better to keep more of my money in
the market. Besides, unless you fly at least 100 hours per year, it
just doesn't make sense to own by yourself and its not good for the
plane. My partner and I paid cash $80K.

Jon, are you on the Mooney list now? You should check out aviating.com
to sign up for either the general Mooney list or the tech list. Both
are VERY helpful to Mooney owners.
-Robert

Jon Kraus wrote:
Yes I am subscribed to the Mooney list... It has an unbelievable amount
of great information for Mooney drivers like us...

Could you give a pointer to the list? I tried it once before and found it
unacceptably chatty, but maybe I'll try it again.

Thanks. Dave

Dave,
There are two lists. There is a general lists and sometimes gets very
chatty and crappy. Other times its great. There is also a tech list
that is pretty tightly controlled (usually). The tech list is just SO
AWESOME! Just two weekends ago I wanted to replace a vent in my Mooney
and couldn't figure out how to get it out (the maint. manual leaves a
lot to the mind). I had answers right away.

For me, the trick is to NOT use your regular email account to
subscribe. I created an email account in yahoo that I only use for the
Mooney list. I sometimes go months without looking at it because I'm
busy. Then, I'll have an issue and I'll log into that account, ask a
question and get a quick answer. Many of the operators of our Mooney
factory service centers are on the list too (Tom from Top Gun, Paul and
Robert from Lake Aero, Don from Maxwell Aviation, etc). These guys are
the gurus of keeping Mooneys running (and I've had each of them work on
my Mooney).

Anyway, to subscribe go to aviating.com.

-Robert

"Once the aircraft purchase is made, the Feds will then allow this
individual to take accelerated depreciation"

True, but financing has nothing to do with accelerated depreciation,
does it? I have a student (and fellow Mooney driver) who just bought a
Hummer and a Corvette last year for just this reason. He's a home
inspector and can write off the vehicles because he travels around the
state in his work.

-Robert

"Robert M. Gary" wrote in message
ups.com...
"Once the aircraft purchase is made, the Feds will then allow this
individual to take accelerated depreciation"

True, but financing has nothing to do with accelerated depreciation,
does it? I have a student (and fellow Mooney driver) who just bought a
Hummer and a Corvette last year for just this reason. He's a home
inspector and can write off the vehicles because he travels around the
state in his work.

I believe that automobile have a celing on deductibiity. I'd guess people
got tired of subsidzing BMW's and Hummers. IIRC, the most you can deduct is
the cost of a average mid-sized car. Afther that, you're on your own.

"Robert M. Gary" wrote:

True, but financing has nothing to do with accelerated depreciation,
does it?

True. I guess I got carried away in justifying why someone would purchase
an expensive aircraft with financing.

--
Peter
























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