Florida Aircraft Purchase Lawyer
Whether you are buying or selling an aircraft, working with an experienced attorney can prevent costly and unpleasant surprises later on. No doubt you should have legal counsel by your side every step of the way.
There are often a variety of terms and conditions that apply when making an aircraft transaction that an airplane purchase lawyer can provide assistance with. A lawyer can draft, review, and complete a purchase and sale agreement, and help their clients interpret FAA regulations to ensure compliance.
Contact Parikh Law in Orlando if you have questions about aviation transactions and want to schedule a consultation and get support during the purchase and sale transaction. Our Florida aviation lawyers have worked with the Federal Aviation Administration (FAA) and are Board Certified by the Florida Bar Association to practice aviation law.
Call 321-558-2704 today to speak to an attorney who is passionate about business aviation and helping their clients get back in the skies. Our law firm builds on decades of combined litigation and aviation law experience helping buyers and sellers avoid common pitfalls in aircraft transactions. Our clients are pilots, airlines, aircraft owners, and others in the aviation community. Contact us now.
Why Should You Hire A Lawyer for an Aircraft Purchase?
Aviation law is a specialized field involving federal regulations and other facets of air travel. We have a team of Florida FAA violations attorneys here, but we also handle the actual purchases of these aircraft as well. There are many people involved in the sale of an aircraft, including an aircraft mechanic, CPA, broker, and others. The best way to protect your investment is to talk to one of our lawyers, so call 321-558-2704 to contact Parikh Law.
There are a lot of things that can complicate a transaction or terms you will want to negotiate before finalizing the transaction. It can be very stressful to go through the process. With the encouragement of your experienced aviation attorney, you can go through the process much more confidently. Find out how we can help with your business, tax planning, and financing issues by contacting us today.
Aircraft Sales and Use Tax
Compliance with local sales and use tax is essential to aircraft ownership. Many states impose large sales and use taxes on aircraft owners that are different from other types of taxes on real estate. Aviation counsel can help you reduce or avoid your tax burden from the purchase and sale of an aircraft. A seller is required to charge the aircraft buyer sales tax on the purchase price. The seller must then remit that to the state unless the buyer provides an exemption, such as the “fly away exemption” or lessor exemption. Contact Parikh Law to discuss your options for avoiding capital gains tax.
Like-Kind Exchange (IRC – 1031)
When a pilot or owner decides to sell their aircraft and replace it with a new one, the gains they make from the sale are taxable. Not just that, they can result in significant tax liability.
A business aircraft purchase can be structured in one of two ways:
- Forward like-kind exchange: When an aircraft is sold before the replacement is purchased
- Reverse like-kind exchange: When a new, replacement aircraft is purchased before selling the relinquished aircraft
Both the replacement aircraft and the one that was replaced must be used in a trade or business, or held for investment.
Aircraft Leasing (Wet/Dry)
Leasing is a significant part of business aviation but a number of issues can arise between an aircraft owner and the person or entity they are leasing it to.
A “wet lease” is when the lessor provides the aircraft as well as one or more crew members, like a pilot.
“Dry” or operating leases are when the lessee operates the craft or even subleases it to someone else to operate for them, but the lessor remains the owner. Therefore, the lessor also enjoys certain tax benefits.
A title search protects the aircraft buyer and seller from having to face a lien against the airplane. Most aircraft liens must be reported to the FAA per federal law, though there are several exceptions. Sometimes issues with a title are deal-breakers, but we help you through all circumstances.
How Can a Lawyer Help in This Process?
A lawyer ensures that you comply with all ownership and operational requirements that are applicable to you. Parikh Law can help you sell and finance an aircraft.
If you have questions about financing business aircraft, then contact Parikh Law. We have helped our clients to negotiate the ownership of aircraft with the least amount of financial risk while ensuring compliance with FAA regulations.
A purchase agreement is a collection of legal documents that can protect a buyer. Parikh Law has extensive experience in the aircraft transaction process starting with the pre-purchase inspection, title search review, and purchase and sale agreement. The documents will include the cost that the buyer will pay, as well as the delivery conditions, and past compliance with the Federal Aviation Administration’s airworthiness directives.
If you are selling an aircraft, then the purchase agreement can ensure that you get paid on time and protect you in other ways. Call the business aviation attorneys at Parikh Law.
The costs of owning an airplane (hangar, insurance fees, aircraft payment/depreciation, etc) make co-ownership an appealing option. Parikh Law helps you and your co-owner determine the optimal ownership structure to comply with FAA rules, and reduce the amount you pay to sales/use tax on the aircraft purchase. We also protect you and answer questions regarding who should hold the title (individuals vs. business entities), and draft an agreement that lists each party’s rights and responsibilities toward each other.
What to Expect When Purchasing an Aircraft?
Attorney Rahul Parikh is a member of the National Business Aviation Association and the Florida Bar Association. Mr. Parikh has the proven expertise to practice in this highly-specialized field of law and help his clients with FAA registration and regulatory issues, regulatory compliance, aircraft transactions, financing, and other aviation matters.
You can expect the highest level of customer service, respect, honesty, and integrity when you work with Parikh Law. Contact our law firm today.
We Help You With Your Aviation Law Concerns
Call 321-558-2704 to speak to the aviation counsel at Parikh Law. You will be connected with a Florida aviation transaction lawyer who will provide essential counsel to the booming aviation industry in Central Florida. We work with private aircraft owners, publicly traded aircraft owners, aircraft management companies, and Fixed Base Operations (FBOs). We also provide aviation defense for insurance claim disputes, aviation accidents, airplane equipment malfunctions, and more.