408CD at Columbus with Air Force

Tax Basis and Financing

When you are borrowing money to finance the purchase of an aircraft, tax basis may be an important topic as it relates to how the loan should be structured and titled.

If your operating business entity is an S corporation, it is especially important that the loan be properly titled, identifying the correct borrower can impact the amount of losses that can be deducted and amount of tax free distributions that can be withdrawn by the shareholder.

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