Tax Planning for Year-End Aircraft Purchases
Buying an aircraft? Don’t wait until closing to think about taxes. Angel Houck explains why early tax planning saves time, money, and stress at year-end.
An aircraft purchase involves moving parts and people. So when should you start tax planning? The answer is simple: right away.
Often, tax planning strategies guide the ownership and operating structure that you put in place. This can include federal income tax planning, including eligibility for bonus depreciation, and state and local tax minimization.
First and Last Step
I like to think of tax planning as the first and last step of the acquisition process. I recommend that you schedule a call with your aviation tax advisor and other key members of your team early in the process.
Be pro-active and put your structure in place at the beginning. That way, you can move quickly once you identify an aircraft and leave time for state registrations, inquiries, or other tax matters that need to be addressed.
Key Considerations Along the Way
As you move further into the process, you’ll want to identify other tax matters. These can include closing location, state exemption requirements, and initial flight plans. Be sure to address them early to properly execute your federal and state tax plan.
Why Timing Matters
Early tax planning becomes even more important as year-end approaches. After all, aircraft transactions often spike in the fourth quarter. During this time, tax advisors and most aviation professionals have more limited availability than usual.
That’s why you don’t want to wait until it’s too late. Start tax planning long before you purchase an aircraft. If you wait until closing, it can be too late to correct any unexpected tax consequences.
As always, please consult with your aviation tax advisor early in the process.
How Changing Interest Rates Could Impact Your Aircraft Purchase or Refinance
Changing interest rates create both risk and opportunity. Alaina Joseph explains how to leverage today’s rate environment for your next aircraft purchase or refinance.
With the right strategy, financing or refinancing your aircraft before year-end can be smooth, strategic and rewarding.
Let’s start by looking at interest rates and where they’re projected to go by December 31st. Today, rates are anywhere from 0.25% to 0.75% lower than the rates we’ve seen for the majority of 2025.
Changing Interest Rates: What’s Next?
Revised labor data, out this month, showed 911,000 fewer job creations than initially estimated by the U.S. Bureau of Labor Statistics.
This, combined with inflation data showing the core Consumer Price Index (CPI) rose 3.1% compared with last year, allowed the Federal Reserve to make a 0.25% rate cut last week. The rate cut signals that the Fed believes there’s more downside risk in the labor market. But they aren’t committing to any major adjustments while inflation is still coming in hotter than their 2% target.
Usually, the Federal Open Market Committee (FOMC) shares guidance on expectations for future monetary policy adjustments with a briefing from the Fed chair, Jerome Powell. The committee also releases the “dot plot,” which shows members’ expectations of where rates will go over the next few years.
The guidance from this meeting, however, was a bit fuzzy, as we continue to get conflicting economic data and the net impact of tariffs is not yet known.
The Fed’s latest dot plot offers no clear signal on where short-term interest rates may head next. Therefore, we will continue to keep our eye on economic data and look for clues for what the Fed will do next. What is certain is that aircraft loan rates are lower today than they’ve been for most of the year. So how can you make the most of it?
Lower Interest Rates Signal New Opportunities
Many owners pay cash or finance smaller percentages of their aircraft purchases. However, today’s lower interest rate environment might signal new opportunities.
For example, owners can leverage equity in their existing aircraft or finance their next purchase, which frees up cash for their business or other investments.
Additionally, borrowers may benefit from a variable-rate loan if short-term rates continue to decline. Recently, variable rates ran higher than longer-term fixed rates due to the inverted yield curve.
By structuring an aircraft loan with a variable rate, borrowers can often reduce prepayment penalties. They may also reap the benefit from continually declining rates over time.
As we often advise, talk to your aircraft lender early and often. Together, you can strategize how to best take advantage of current interest rates and prepare for a smooth year-end purchase or refinance.
BOSS Recap: From Founder-Led to Investor-Ready
At BOSS, bizav owners dropped the hustle mindset and dug into what really builds freedom: systems, leadership, and financials that stand up to scrutiny. Dustin Cordier shares four key takeaways that every owner needs to hear.
Earlier this month, 27 business aviation owners gathered in Dallas for the first-ever BizAv Owner Strategic Summit (aka, “BOSS”).
The mission was simple: talk openly about the challenges of ownership, and learn how to build companies that don’t rely on the owner to function.
Breaking Down the Owner’s Dilemma
As a group of business owners, we tackled the big questions:
- How does an owner reduce dependency on themselves?
- How does the owner protect the value they’ve created?
- And when the time comes, how does the owner exit on their terms, without regrets?
The conversations were candid and practical. Owners and advisors shared stories that cut through the usual myths.
Four Big Takeaways
BOSS attendees also aligned on four big takeaways:
- Freedom requires systems.
Hustle only takes you so far. True freedom comes from documented processes, strong leadership teams, and repeatable financials that can withstand scrutiny.
- Know your risks.
Every business faces the “5 Ds”: eath, disability, divorce, distress, and disagreement. Planning for these risks protects both the company and the family.
- Value is more than numbers.
Human, customer, structural, and social capital are just as important as revenue when it comes to enterprise value.
- The exit is a choice.
Owners need options that fit their goals, not just the market’s timing.
Why Advisors Matter
Experienced advisors—specialists in M&A, tax, legal, capital, and branding—shared real-world scenarios that showed how easily value can slip away without planning.
Their message was blunt: winging it isn’t a strategy.
Walking Away with Clarity
Aviation business owners left BOSS with two things:
- Community.
A circle of fellow owners who understand the unique pressures of business aviation.
- A path forward.
Assessment tools to help create action plans—pairing business execution (like org charts, SOPs, risk reduction) with personal clarity (estate docs, family alignment, and a vision for life after business).
Missed the Event?
Not to worry! You can reap the benefits by taking a self-assessment, designed to help you gain clarity on your next steps.
We also invite you to join our newly forming Circle community. Message me with interest here.
You’ll see how structure builds freedom, and how confidence comes one system at a time.
Aircraft Delivery Conditions: What Are You Buying?
In an aircraft transaction, price doesn’t tell the whole story. Attorney John Farrish explains why delivery conditions can turn a jet into either a dream deal or a disaster.
When it comes to buying a plane, the price alone doesn’t tell the whole value story. The same jet can be a dream or a financial disaster depending on the delivery conditions.
What matters is knowing exactly what you’re getting for that price. The difference can swing millions of dollars in value.
Defining Delivery Conditions
The aircraft condition that a buyer is getting and the seller is promising vary wildly from transaction to transaction. A buyer and seller negotiate these “delivery conditions” in the letter of intent and finalize them in the aircraft purchase agreement.
The most common delivery condition is basic airworthiness. In other words, is the plane legal to fly? This includes a Standard Airworthiness Certificate.
Airworthiness also includes Airworthiness Directives and mandatory Service Bulletins. But does that include every one ever issued? Or only those required to be complied with before closing? And can any be deferred or extended, leaving the buyer to deal with them down the road?
Damage and Corrosion
Common requirements include no undisclosed material damage or material corrosion. Both can impact the resale value of the plane and may have recurring inspection requirements that cost the new owner money and downtime.
Records and Logbooks
Delivery conditions should require complete logbooks and other required aircraft records unless disclosed otherwise. If a plane will be put on charter, then some additional records will be required that need to be spelled out in the delivery conditions.
It’s also important to clarify whether any records can be in electronic format or recreated. Addressing this upfront avoids disputes later.
Equipment and Specifications
What equipment is installed or comes with the aircraft? The seller should list (and the buyer should verify) the aircraft specifications, and any known loose equipment, such as engine covers or headsets.
Without this level of detail, surprises can cost you. Imagine buying a plane advertised with Wi-Fi only to learn it was never installed, leaving the seller with no contractual obligation to provide it if not part of the delivery conditions.
Engine Programs
As discussed in this article, it’s important to document engine programs and their transfer. Unverified obligations or program conditions can haunt a buyer if the contract excludes them and due diligence overlooks them. You’ll also want to confirm whether deferred hours or balances exist that shift to the new owner at overhaul or the hot section inspection.
Be sure to require the seller to pay any minimum usage requirements that are common on many engine programs.
Temporary Parts
A savvy buyer should also require that no temporary parts are installed on the aircraft. Otherwise, you may need to later return a rental part or exchanged part, which could require a repair or shipping fee, as well as maintenance charges lurking that relate to the original part.
What Must Work
The biggest negotiation concerns what systems and components must function on delivery. Does the seller only need to fix things for the plane to be airworthy? Or must they fix other broken items, such as the coffee maker, window shades, or tray tables?
Obsolete systems, such as DVD players or ancient satellite phones, complicate matters even further. Replacing these items could be impossible, instead requiring expensive upgrades. Prudent sellers will exclude any old systems unsupported by the manufacturer that they won’t repair.
Whether buying or selling a plane, it is imperative to have an experienced aircraft broker check in advance what obsolete systems exist and work hand-in-hand with your attorney to address these in the delivery conditions.
“As-Is, Where-Is”
The simplest, and rarest, delivery condition is “as-is, where-is.” Simply put, the buyer will “kick the tires” at a visual inspection, say “yes” or “no,” and accept all risk. These deals are unusual and typically involve older planes sold at steep discounts to offset buyer risk.
No matter the aircraft or price point, it’s imperative to document the delivery conditions in the purchase agreement. With careful planning, buyers and sellers can avoid unnecessary disputes over repairs during the pre-buy inspection. This way buyers know what they’re buying, and sellers know in advance what they will be on the hook to fix.
This article is not intended, nor should it be construed or relied upon, as legal advice. The comments, recommendations, and analysis expressed in this article are those of the individual author, John Farrish, are purely informational. This article does not create an attorney-client relationship between you and the author or his law firm. If specific legal information is needed, each person should retain and consult an attorney with knowledge of the subject matter.
Are You Ready for Your Upcoming Aviation Insurance Renewal?
The clock’s ticking on your insurance renewal. Don’t get caught flat-footed. Tom Hauge explains how timing, pilot updates, and market leverage can save you money.
As the aviation insurance marketplace continues to soften, it’s critical to take advantage of every opportunity to secure the most competitive rate.
After all, timing and preparation play a bigger role than many owners realize.
Why Timing Matters
Insurance brokers typically send clients renewal forms 60–90 days out. That window is important, but don’t confuse early notice with early submission.
Brokers need 30–45 days to “work the markets” with updated pilot forms, aircraft valuations, and liability requests.
If you do wait until the last minute, you limit their ability to present your case to underwriters. Instead of multiple competitive bids, you may be left with one or two subpar options.
Pilot Experience and Renewal Leverage
Like most of us, underwriters don’t like guesswork. They want current data on training, time in type, and recent hours flown. This is especially critical if you’re a turbine transition pilot in your first year of ownership.
If you update your broker 60 days out, you might log another 25–30 hours before renewal. That time could push you past milestones—like 100 hours in type—that can influence rates.
Providing updated hours closer to renewal allows your broker to showcase your most competitive experience level.
How to Help Your Broker Help You
Your broker can’t fight for your best coverage without timely updates. Discuss with them when to submit forms so you balance accuracy with underwriting lead time. For some clients, those extra hours mean little. For newer turbine pilots, they could mean everything.
Final Tips to Save at Insurance Renewal
Based on years of experience, please don’t wait until the last week to update your insurance broker. Procrastination limits your options, adds stress, and may leave you with higher premiums. By arming your broker with updated pilot and aircraft details 30 days before renewal, you’ll maximize your leverage and your rate.
Why Contract Schedulers are the New Contract Pilots
For decades, flight departments have relied on contract pilots. But contract schedulers? Lindsay Dyer shows why they’re the overlooked advantage your team can’t ignore.
Nearly everyone understands the value of contract pilots. They give flight departments flexibility, help reduce costs, and keep operations running smoothly without adding permanent headcount.
The same logic applies to contract schedulers.
Without backup support in scheduling, departments risk leaving a critical piece of in operational coverage.
Contract Schedulers: Why They Count
Every flight starts long before the crew arrives. Permits, customs, fuel, catering, NOTAMs, and weather reroutes can determine whether a trip succeeds or stalls.
A skilled scheduler is the first line of defense against last-minute chaos. But when that person is out of the office, you need a reliable “force multiplier” on your side.
With a contract scheduler, you get:
- Trusted backup when your team is stretched thin, out on PTO or away on medical leave.
- On-demand scalability, especially during heavy travel seasons.
- Proactive planning that keeps trips on time, compliant, and crew-ready.
Reliable Coverage When It Counts
More flight departments are realizing that flexibility doesn’t stop at the flight deck door. Even with a scheduler on staff, you need a reliable backup to prevent operations from grinding to a halt when they’re out. \
Pilots have enough on their plate. They shouldn’t also track every detail while preparing to fly. Monitoring crew duty limits, NOTAMS, and weather, for example, aren’t optional, they’re mission- and safety-critical.
That’s why a qualified scheduler, even on contract, is essential. They cover the groundwork, keeping your team safe, compliant, and focused on flying.Bottom line: If contract pilots give you freedom in the air, contract schedulers give you freedom on the ground. Pair the two together, and you’ve got a flight department that runs lean, smart, and stress-free.