New here, and want to add an "O" to my money.

[jbs007]

Hi all, I just joined mooneyspace because I am looking at buying a Mooney and should probably acquaint myself with the Mooney world.  I'm not asking for "what Mooney to get", I already know I want an E.  My real question is about how to set up taxability of it (or lack thereof).  It's complicated, and I couldn't find help in searching...

I am from Louisiana, it's my perminent residence, I have LA drivers license and pay taxes there...  I am in the Marine Corps and stationed in CA (where the airplane will eventually be), and the airplane I buy will probably not come from either of these locations.  I'd like to own the aircraft through an LLC and maybe rent it out through a Flying club.  How can I LEGALLY avoid sales tax and use tax? Where should the LLC and aircraft be registered?  Anything else I can do?  Or can anyone at least point me in the right direction?

I know its a pretty specialized question, but it's pretty much the last problem I have yet to solve.  Thanks! And I look forward to doing all kind of Mooney things when I figure out what that is.

 

Jared

 

 

[gjkirsch]

I don't know the specifics of the local tax authorities but you should not have a problem legally accomplishing your objectives. A lot of people do the same thing or a version of it.  I used my accountant when I used the plane for business and could write it off.   He researched it and told me how it needed to be set up.  I did a little reseach myself http://www.advocatetax.com/our-clients/ that also made me feel a little more comfortable.  Good lUck

[Cris]

Welcome Jared-As you say tax issues are personal but here is a start that will provide an agent & proper paperwork for either an LLC or Corp and specializes in Aircraft. They are quite reasonable. Call them for advice. Nevada Corps also provide a great deal of privacy so you might do a Google search in that state. Since you are from Louisiana do not fly the new A/C into Florida for any reason in the first six months or so of ownership as Florida automatically will send you a sales tax bill for simply flying in their airspace. It is not pretty.  

Delaware Registry, Ltd.
3511 Silverside Road, Suite 105
Wilmington, DE (USA) 19810
302-477-9800
302-477-9811 (Fax)
800-321-2677
corp@delreg.com
 

[bnicolette]

Quote: jbs007

I am in the Marine Corps and stationed in CA (where the airplane will eventually be), and the airplane I buy will probably not come from either of these locations.  I'd like to own the aircraft through an LLC and maybe rent it out through a Flying club.  How can I LEGALLY avoid sales tax and use tax? Where should the LLC and aircraft be registered?  Anything else I can do?  Or can anyone at least point me in the right direction?

I know its a pretty specialized question, but it's pretty much the last problem I have yet to solve.  Thanks! And I look forward to doing all kind of Mooney things when I figure out what that is.

Jared

[rbridges]

I agree with everyone else above.  Call a professional.  Just an FYI, Georgia doesn't charge sales tax in a private party purchase, so I didn't pay sales tax.  I am, however, paying around $300/year for property taxes.

[kris_adams]

I had the same experience as Rob (Georgia). Since I bought it from an individual, I didn't have to pay sales tax. The fine county of Dekalb got me for $1100 property tax for 2 years though. The plane is in Gwinnet county now so I'm hoping it will go down. $300 would be wonderful!

[pjsny78]

When I went to the MAPA convention a few months ago. There was a tax expert that answered a lot of these very questions. I do not have his information on me but he is a Mooney owner and is based out in California. If you call mapa they can also be of great help and get you in touch with the guy.

He helps people throughout the country.

 

[jbs007]

Thank you for all the help! I have contacted a few of these tax people and am awaiting replies.  As far as spending money on mods, I think the only thing I will do for now is add the electronic ignition that just got STC'd.  It seems like kind of an "investment" for the fuel savings.  I also figure it will aid in starting.  Does anyone have a different opinion of this?