Is there a Smart Way to buy an Airplane?
The average American household will spend $649.00 on Christmas this year. While we can choose to spend more or less this holiday, most of us will undoubtedly part with more money at this time of year.
Some families will spend more on products and services that are considered discretionary. Some examples would be:
Backyard Pool $15,000.00-$17,000.00 Country Club Membership $6,000.00-$35,000.00 Family 4 day Caribbean Cruise $2,000.00-$3,500.00 Big Screen T.V. $2,500.00 Plasma Screen T.V. $7,000.00
The list goes on to include vacation homes, boats, golfing, skiing, scuba diving, summer camp. . .
Airplanes, on the other hand, have been perceived as a purchase that is "out of reach" for the average upper middle-class family. But the reality is that learning to fly and the purchase of a new aircraft can actually be more affordable than many of the typical family expenditures listed above.
Consider the purchase of a 2003 Cessna Skyhawk SP, a 4-passenger airplane that's suitable for both training and travel for business and pleasure: * Initial Investment: $19,400.00 Free fuel incentive ($3,500.00) Included pilot training ($4,000.00)
Tax savings with 30% business use ($39,852.00)
1st year "out of pocket" ($27,952.00)
So after the first year, the owner is now a certified Private Pilot and can decide to sell the airplane and move up to something a little bigger:
Sale of the Skyhawk $171,072.00 Gain from the sale of Skyhawk $4,624.00
What will you do with your $4,624.00?
*These numbers are approximate. Talk to your tax planner about business and bonus depreciation
Pat Redmond helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Learn about flying for personal transportation, sign up for FREE aircraft purchase tips. Visit: http://www.airplanenoise.com
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