What are the benefits of a leaseback arrangement?

There are several benefits to leasing your airplane to a busy flight school.  Among them:

  1. Reduce the cost of aircraft ownership.(Some leasebacks may generate a small profit.)
  2. Reduce income tax liability. (In some years the entire cost of the airplane may be deductible!)
  3. In Michigan, leaseback owners may elect to pay use tax rather than sales tax. (This saves the owner thousands of dollars since the tax is passed to the renter.)
  4. Justify the cost of an airplane if the owners flight time may be limited.

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