All aircraft laws fall under a federal based law like the Federal Aviation Administration. This federal company produces the legal restraints and specific laws on if an aircraft can fly safely.
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What is Aviation Law?
Aviation Law falls under the Federal Aviation Administration that enforces the air traffic policies, laws and administrative agencies that fall under the state and federal government. Even though they are federal laws, the states can alter specific federal remedies to adjust to the state laws involving aviation.
What are some legal issues if I’m considering purchasing or selling an aircraft?
There are a considerable amount of tax and legal obligations when in the process of purchasing, selling or leasing an aircraft that apply to the Federal Aviation Administration guidelines. You must have purchase agreements, contract for lease of an aircraft, Aircraft Bill of Sale, or any other legal paperwork to be completed and ready for review before you are able to take flight with an aircraft. It is always best to build a team when purchasing an aircraft, because buying one alone will cause issues in the future.
Leasing equipment doesn't require as much cash and can stretch your capital budget. One way to acquire an aircraft for your budgeted expenses is to use a lease. The rental payments are usually treated as an operating expense.
Those considering aircraft ownership should consider the current tax benefits of leasing. Complicated tax measures called a preference tax, such as the Alternative Minimum Tax(AMT) have increased the costs of asset ownership for many companies. Certain tax deductions (such as depreciation) are classified as tax preference items. Lease payments, on the other hand, are not tax preference items and are fully deductible. Simply put, leasing can reduce preference items and reduce your income taxes.