Things Which Aircraft Lease Attorney Need To Know

By Amy Snyder


Aircraft leasing is a viable as well as a flexible investment especially for those who cannot be able to own one. Any machine which can float or can fly is worth leasing as it is considered to be capital intensive and therefore it can be depreciated for tax benefits. This generally allows an individual to be able to optimize on the cash flow. However this particular process is not an easy one and this is the main reason why you need to consider services of an aircraft lease attorney.

You need to understand the length of that lease term. Letting a plans varies and it takes five to ten years. This is basically one of the most important aspects as to why you need to hire an expert so as to aid in negotiations, involving rent, repairs, reserves, plus the re-delivery obligations.

Hiring a lawyer helps in understanding the revenues together with the rates of leasing. At the end of billing cycle the FBO usually calculates the expenses of the aircraft like maintenance or some other items as stated in an individuals agreement. It also calculates the revenues which it sends a check or probably a bill.

These are basically some of the potentials of tax benefit but they may not be possible in both scenarios. Poor planning during leasing might lead to multiple tax exposure to the client. An attorney should therefore identify the clients tax priorities before leasing the helicopter. Another thing which should be exposed is the personal use of a business aircraft which comes along with numerous consequences.

If you do not pay for these expenses then you are likely to receive fifty percent. An attorney would also play a vital role in the determination when it comes to insurance. When leasing a plane you may decide to keep the existing policy. The advantage of keeping the existing policy is that you are granted a peace of mind. You have control of the coverage limits, determination of the coverage as well as timely payments.

This is very important as it ensures that preventive inspections plus maintenance are not delayed. The relevant clauses relating to the compliance with the law applicable on this case need to be evident in the agreement of the lease. Payment management is another crucial concern with this kind of an investment.

The amount to be paid together with the mode of payment should be well spelt in the agreement. The payment can either be hourly rate, weekly, monthly or even a lump sum. The client can also cater for any repairs or replacements besides the hanger costs, fuel taxes as well as airspace fees.

It is therefore very crucial to have a lawyer who can understands the provisions of the clauses together with the circumstances so that you can be prepared for any changes regarding the rental charges. Taking time to understand the lease requirement for both parties is very important as this makes sure that the expectations of each party is well met plus the complication are kept aside.




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