WHAT IS THE BEST STRUCTURE FOR OWNING A FAMILY OFFICE JET?

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Private charter and ownership structures for the Family Office Space has seen a significant growth year over year for both business and personal use. The particular structure will vary depending many factors to include: expected usage, structure of the family office, family office income stream, is this jet for personal or business use or business and more.  If structured appropriately, Family Office Jet ownership can result in tremendous tax savings or even deferment.  

 

Every Family Office is unique. Royal Elite likes to assist each office in what best fits their scenario.  It is critical that a family office protect their assets therefore structuring an aircraft ownership to mitigate any liability and risk factors is essential.

 

 Some of the many ways that this mitigation takes place is through properly navigating the segregation of ownership and operations of the aircraft from the family offices assets.  Through our partners, we can assist with proper insurance policies and ensuring appropriate corporate structuring is in place to maintain legal structuring. This structuring can also help in regards to usage and successful planning. For instance, what will the usage of the aircraft look like and how and when the asset will be sold or allocated in the future.  Royal Elite has excellent third party aviation law firms that can assist you navigating these important inquiries.

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FAMILY OFFICE INVOLVEMENT IN PRIVATE AVIATION

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We understand that no Family Office knows their asset structure like the Family Office themselves.  Our partners can help your organization by evaluating your particular asset structure, who and which entities under ownership will be using the aircraft and perhaps, the percentage of executive business use versus private usage of the aircraft.  Strategic Planning is key in knowing the best way for Royal and its partners to structure the best scenario for you.

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ACCOUNTING & DEPRECIATION

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There are many potential tax advantages to owning business aircraft. With these opportunities comes many variables. Our aviation attorneys can assist you. There is no doubt that ownership structures can be complex and convoluted if not navigated carefully. 

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Some of the services our attorneys can assist with is setting up a monitoring system that will help keep track of the purpose of each flight so that your office can properly depreciate the aircraft and determine which costs and expenses are in fact deductible.

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We understand the complexity of mixed use, and making sure that our clients maintain proper insurance and maintenance and that expenses are not commingled with personal vs business accounts to maximize tax advantages.  These complexities play a significant role in jet ownership.

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CAN MY FAMILY OWN & OPERATE OUR OWN AIRCRAFT WITH FULL TAX ADVANTAGES?

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The truth is, every situation is unique.  In full transparency, there will be scenarios where the Family Office can own and operate the aircraft directly. This is usually the case when the family office owns significant assets and obtains enough income to be able to take advantage of the tax depreciations. There are in fact FFA rules about cost reimbursement for Jets that are private owned therefore our charter service or fractional ownership model may be the best fit more some.

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ADVANTAGES TO UTILIZING ROYAL ELITE JET

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For the family office space, it is instrumental to have a professional management team to oversee your aircraft and the essentials that come along with it.   From hiring our experienced pilots to overseeing maintenance with our internal services crews, to storing your asset in our hangers while ensuring all insurance and certifications are kept up to par. We are your one stop shop to guarantee your operational requirements and needs are met.

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MONETIZING YOUR ASSET TO OFFSET FIXED EXPENSE

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Royal Elite offers an excellent strategic partnership program.  Because we have our own certified FFA Air Taxi Operators, we can certify then charter your Aircraft when it is not in use. This allows us to generate revenue for your Family Office, ultimately cutting some of the fixed costs that come along with Aircraft ownership. There is also some excellent tax benefits that come along with this as well.

 

Reach out today to see if we can help find your perfect Aircraft today!