Leasebacks
Prop Culture Aviation’s leaseback program is excellent for those that would like to offset some of the cost of aircraft ownership, generate revenue from their aircraft and even realize a significant tax benefit. Our primary goal is to protect your asset and insure that it is marketed professionally.
What Is An Aircraft Leaseback?
Aircraft leasebacks are where you purchase the aircraft and “lease it back” to PCA for use on our rental line. You still have full use of the aircraft; you simply book it on our online scheduling system whenever you want to fly. Our customers do the same, generating revenue for you. At the end of each month, you will get a statement that details the income generated and the expenses incurred. Along with the statement, you will get a check for the net income. The leaseback has no set term. You can change your mind at any time and take your plane off the rental line with 30 days notice.
Additional Advantages to Aircraft Leasebacks
Complete Aircraft Management
We handle everything for you. All you do is fly. Prop Culture Aviation Service ensures that the aircraft is kept in airworthy condition all of the time. All scheduled maintenance, service bulletin and airworthiness directive compliance is taken care of. All databases are kept current, as are the software versions of the avionics. Our computerized system tracks all flight time to provide a detailed report of the time you fly as well as all of the rentals. The aircraft is kept clean and detailed and waxed occasionally to keep the paint looking great. Any unexpected maintenance needs are quickly repaired to get the aircraft back on the rental line.
State Sale Tax Savings
When you purchase an aircraft with the intention to lease it back to PCA, we can show you how to set things up properly with the state to where you can avoid paying sales tax on the purchase price of the aircraft. This is a significant savings! Sales tax is collected each time the aircraft flies, including when you fly it. PCA pays this to the state each month and reports the amount to you. So, you only pay sales tax for each flight you make.
Potential Federal Tax Deduction
When you purchase an aircraft with the intention to lease it back to PCA, we can help you to structure it in such a way to utilize the purchase price of the aircraft as a federal tax deduction. The benefits of this kind of structure can save high income earners six figure savings on their annual tax bill.
Insurance Benefits
All of the aircraft leased back to us are insured by us on our commercial, fleet policy. You as the owner are a named insured as well. New or low time pilots can benefit from PCA’s relationship with our insurance underwriter. Insurance companies can put severe restrictions on new pilots of high performance aircraft. Our insurance underwriters know the level of training we provide and know our dedication to safety. Because of that and the level of trust we have earned, we have no restrictions. Instead our policy simply allows pilots, as approved by one of our chief pilots, to fly the plane.
Better Engine Health
Most aircraft owners don’t fly often enough to maintain optimum engine health. Engines that sit without running develop slight rust on the cylinder walls. When the engine is eventually ran, the pistons wear this rust layer off introducing it into the oil where it continues to be distributed to the moving parts of the engine. It is best for the long-term health of the engine to run it often. Aircraft on leaseback are flown much more often and avoid this problem.