buying an aircraft

Aviation tax experts discuss who truly benefits from aircraft tax depreciation and the pitfalls buyers often overlook. Here’s what they told Felipe Reisch.

Tax depreciation is often cited as a financial consideration that can influence a business aircraft acquisition. While it has the potential to improve the economics of ownership in certain situations, the reality is often more complex.

The value of depreciation depends on a range of factors, including how the aircraft will be used, the structure of the acquisition, the owner’s broader financial position, and their long-term plans for the asset.

Zeinat Zughayer, Senior Manager of Tax Advocacy and Controversy at Baker Tilly, shares that buyers who are already frequent users of private aviation and plan to hold an aircraft for the long-term are generally the most likely to benefit from depreciation-related tax incentives.

“For example,” she illustrates, “individuals or businesses that currently rely heavily on fractional ownership or charter services and anticipate sustained aircraft usage may be well positioned to realize the benefits of accelerated depreciation.”

For Noah Block, Aircraft Tax Advisor at Aviation Tax Consultants, business owners are most likely to benefit. “Business owners with customers, clients, prospects, or projects in different locations can buy an aircraft, use it to work more efficiently and effectively, and write it off.

“W2 employees and retirees will see little practical advantage.”

Letisha D. Sailor, Founder & Managing Member at AvTax Advisors, agrees. Those likely to benefit from these incentives are profitable businesses that can maintain sufficient business use over several years and are prepared for the true costs of aircraft ownership.

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This article was originally published by AvBuyer on August 27, 2026.

NAFA member Chris Lee, President, Aircraft Division at 1st Source Bank, shares his latest article on aircraft acquisitions.

There is an old saying that there are more ways to do something wrong than there are to do it right. Few industries illustrate that reality better than aviation.

Aircraft acquisitions are no exception.

Over the years, I have participated in aviation from nearly every seat imaginable. I have flown aircraft, sold aircraft, financed aircraft, and owned aircraft. Along the way, I have witnessed exceptionally successful acquisition decisions and more than a few that left buyers wondering how they ended up with an aircraft that did not deliver what they expected.

This article is the first in a series designed to help prospective buyers think through the aircraft acquisition process. Not simply to avoid mistakes, but to understand the decision-making framework that successful aircraft owners use.

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This article was originally published by AvBuyer in July 2026. 

NAFA member Noah Block, Tax Advisor at Aviation Tax Consultants, shares his latest article about tax mistakes to avoid as a first-time plane buyer.

Purchasing a plane can be an exciting step for a business owner. It can save time, improve access to customers and projects, and create significant tax planning opportunities. However, the tax benefits of aircraft ownership are not automatic.

Many first-time plane buyers have their eyes set on bonus depreciation but overlook the details that determine if they qualify. Before closing on the aircraft, buyers should understand the most common tax mistakes that can create issues later.

1. Buying the Aircraft in the Wrong Entity

One of the first decisions in an aircraft acquisition is determining who or what entity should own the aircraft. Many buyers assume that forming a new LLC to own the plane is always the right answer. While a new LLC is usually created, the member of that LLC is often overlooked.

The structure should consider who will use the aircraft and how the tax deductions will flow through to the taxpayer.

Buying in the wrong entity can create problems with business-use substantiation, passive activity rules, related-party leasing, and the ability to actually use the depreciation deduction.

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This article was originally published by Arcadia Jets on August 11, 2026.

NAFA member AOPA Finance shares their latest article on what lenders should look for when approving an aircraft loan.

Aircraft lenders evaluate four key areas: your financial profile, the aircraft you’re purchasing, your flying experience, and the overall risk of the transaction.

From a financial standpoint, lenders focus on income, debt obligations, available liquidity, and credit history. They want to see that you can comfortably manage the aircraft payment along with ownership costs such as insurance, maintenance, fuel, and storage.

The aircraft itself also plays a role in approval. Factors such as aircraft type, number of engines, damage history, and logbook completeness can influence loan terms.  Experimental, rare, or multi-engine aircraft may require different down payments, rates, or
financing structures.

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This article was originally published by AOPA Finance on August 4, 2026.

NAFA member Arcadia Jets shares one of their latest articles on aircraft acquisition services.

Aircraft buyers have access to more information today than ever before. Listings, specifications, market reports, and online marketplaces make it easy to begin searching for an aircraft. Yet many buyers quickly discover that information alone does not simplify the decision-making process. In many cases, it creates more questions.

Aircraft acquisition services help bridge the gap between available information and informed decision-making. Rather than simply presenting aircraft options, acquisition professionals help buyers evaluate opportunities through the lens of mission requirements, ownership costs, market conditions, and long-term value. This approach reduces uncertainty while helping buyers focus on opportunities that align with their actual needs rather than assumptions.

At Arcadia Jets, we frequently find that buyers who spend time defining their goals before evaluating aircraft make better decisions and experience fewer surprises after closing.

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This article was originally published by Arcadia Jets on July 21, 2026.

NAFA member David G. Mayer, law partner in the Global Aviation Group at Shackelford, McKinley & Norton, LLP, shares his latest article in Business Jet Traveler about aircraft management companies.

Most follow the rules. Beware of those who don't.

Not all aircraft management companies are created equal. Most of them follow the rules while others break them—at your peril. As enterprises for profit, management companies almost always try to win your business, but can they also earn your trust?

What Management Companies Do

Ranging in fleet size from one to more than 300 aircraft, management companies (managers) use different business models, manage a variety of aircraft types, and offer varying scopes of service, all purportedly for your convenience, safety, and comfort. They can earn revenue from management fees and, if permitted, air charter flights.

Perhaps the most important function of managers is selecting, hiring, and/or training crew to fly owner and charter trips. The pilots may develop a unique bond with the owner, which a manager can foster. Managers provide many other services, which include assisting with hangar searches and lease negotiations; administering engine maintenance programs; arranging insurance coverage under their fleet policy; directing maintenance, inspections, and repairs; interacting with the FAA; keeping detailed flight records; preparing budgets; paying vendors; distributing your share of charter revenue; and directing logistics for each trip. 

Regulatory Foundation: The Impact of Selecting a Manager

Managers involved in private aviation operations function mainly in two categories of the Federal Aviation Regulations (FARs)—Part 91 and Part 135.

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This article was originally published in Business Jet Traveler in July 2026.

NAFA member David M. Hernandez, Shareholder and member of Vedder's Global Transportation Finance team, shares his latest article on buying a business aircraft in a seller's market.

When demand for quality business aircraft exceeds available inventory, buyers face a difficult tradeoff: move too slowly and lose the aircraft; move too quickly and inherit risks that can substantially increase the true acquisition cost.

A disciplined and well-prepared buyer can still compete effectively, and potentially save millions of dollars. The objective is not to eliminate every risk, but to identify, quantify and allocate material risks before the deposit becomes nonrefundable and the aircraft is accepted. The first step in the acquisition process is to assemble an experienced aviation transaction team.

Assemble an experienced aviation transaction team

A business aircraft acquisition is not simply a purchase of equipment. It is a coordinated technical, operational, financial and legal transaction. In a seller’s market—where accelerated timelines leave little room to correct mistakes—experienced advisers can help the buyer move quickly without overlooking material risks.

The buyer’s team should generally include:

• Aviation transaction attorney. An attorney with aircraft-transaction experience can negotiate the letter of intent and purchase agreement, define inspection and delivery obligations, coordinate escrow and title matters, allocate risk and address registration, tax, regulatory and cross-border requirements.
• Aircraft broker or acquisition adviser. A qualified broker can identify suitable aircraft, provide current market intelligence, evaluate comparable transactions, assess asking prices and negotiate commercial terms. The broker should understand the buyer’s operational mission rather than focusing solely on completing a sale.
• Aircraft management company. A management company can evaluate whether the aircraft fits the buyer’s intended operations and help develop realistic budgets for crew, training, insurance, hangar, maintenance and administration. It can also coordinate entry into service and identify operational issues that should be addressed before closing.
• Independent maintenance or technical adviser. A model-experienced technical representative can review records, develop the pre-purchase inspection scope, oversee the inspection facility, analyze discrepancies and projected maintenance, and confirm that agreed repairs have been properly completed. This adviser is particularly important when the seller seeks to limit inspection rights.
• Aircraft finance adviser or lender, if financing is required. Early finance involvement can identify appraisal, equity, ownership-structure, insurance and closing requirements before they disrupt the transaction. Financing terms should be coordinated with the inspection schedule, deposit provisions and anticipated delivery date.

Depending on the transaction, the team may also include tax advisers, insurance professionals, title and escrow specialists, customs brokers and local counsel in each relevant jurisdiction.

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This article was originally published by Vedder on July 30, 2026.

NAFA member Louis C. Seno, Jr., Executive Director, International Aircraft Dealers Association (IADA) shares his latest article on the private and business jet market.

At our organization's recent spring meeting, one theme came through loud and clear: The business aviation market may be navigating uncertainty, but trust in private and business jet aviation remains remarkably resilient.​

I had the privilege of listening to a panel of aviation finance leaders discuss the forces shaping today’s aircraft transaction environment. Representing banks, asset-based lenders and leasing specialists, they offered different perspectives, but their conclusions were strikingly consistent: Demand remains strong, capital is available and preparation matters more than ever.​

For those of us who have spent decades in business aviation, this moment feels familiar. Our industry has always operated against a backdrop of economic cycles, geopolitical instability and changing market dynamics. As an expert on the private aircraft market, I continue to see private aviation’s appeal to entrepreneurs, corporations and high-net-worth individuals who depend on mobility, efficiency and control.

What’s different today for senior advisors to high-net-worth clients is the complexity of the financing landscape—and the sophistication required to navigate it successfully.​

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This article was originally published by Forbes.com on July 22, 2026.

NAFA member Amanda Applegate, Partner at Soar Aviation Law, shares her latest article about aircraft scarcity.

Usually, during the summer months aircraft transaction volume slows down, causing pre-owned aircraft inventory to increase. Normally, this summer slowdown is helpful during the 4th quarter when transaction volume peaks. However, 2026 inventory levels remain extremely low, particularly for the desirable aircraft models with low aircraft times and cycles. At a recent industry event I attended, many aircraft brokers mentioned how numerous clients looking for good, quality aircraft to purchase  have been unsuccessful in finding anything that matches their search criteria. This aircraft shortage will impact the remainder of 2026 in three important ways.

First, as inventory levels decrease, sellers respond by requiring more seller-friendly terms in transactions such as larger non-refundable deposits, aggressive closing timelines and limiting the scope of pre-purchase inspections. These seller-friendly terms inevitability leave the buyers accepting more risk in the transactions. A strong seller market can turn off aircraft buyers and result in those buyers not moving forward with a transaction or moving into fractional ownership. Fractional programs can offer interim lease solutions which allow for immediate aircraft access while the new aircraft that the buyer purchased a fractional share in is being built.

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This article was originally published by Soar Aviation Law on July 14, 2026.

While purchase price is the major focus for aircraft buyers, it’s far from the only cost to consider. Some are easily overlooked but can significantly impact the overall transaction. Gerrard Cowan asks industry experts what those costs are.

The real cost of an aircraft transaction extends well beyond the purchase price. A prime example can be found with the Pre-Purchase Inspection (PPI), where costs can change quickly.

“Depending on the aircraft, the work scope of the PPI and discrepancies identified during inspection can introduce material adjustments and extend timelines,” notes Todd Jackson, Senior Vice President of Sales at Elliott Jets.

The cost of any subsequent downtime is frequently overlooked by buyers, according to Jackson. Delays tied to inspection findings or post-close work can affect operations in ways not reflected in the initial purchase price.

“The impact can be meaningful,” Jackson warns. “It is not uncommon to see total transaction costs increase by 5-10% once inspection findings and initial post-close work are fully accounted for.”

Most importantly, such oversights introduce uncertainty, Jackson adds. When expectations are misaligned, deals tend to slow down, require renegotiation, or even fall apart late in the process. “This creates both cost and lost opportunity – particularly if other aircraft were under consideration.”

Aircraft Acquisition: Set Realistic Expectations 

Christopher Lee, President of the Aircraft and Specialty Finance Deposit Divisions at 1st Source Bank agrees that the purchase price is only one component of a successful outcome.

“The transactions that run smoothly, and ultimately create the most value, are almost always those where both parties have realistic expectations from fully understanding the entire cost ecosystem surrounding the deal, not just the asset itself.”

From a financing and structuring perspective, the difference between a ‘good’ and ‘great’ transaction often lies in how well secondary costs are anticipated and managed, Lee highlights. He draws particular attention to the PPI and related costs, highlighting that this is the most common large item where 1st Source sees confusion.

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This article was originally published by AvBuyer on July 8, 2026.

NAFA member Bank of America Global Leasing shares their latest article.

Owning a plane may be a dream, but consider the variables and work with aviation experts.

For those who can afford it, private aviation offers convenience, comfort and privacy—and a powerful symbol of your success. Yet with those benefits come many complexities. “From tax considerations to regulatory concerns to methods of financing, there are many paths you can take,” says Jonathan Hommer, Wealth Strategies Advisor and Head of Family Office Planning in the Planning Center of Excellence for Bank of America Private Bank.

Whether you’re an individual considering private aviation or a family office helping to make these decisions, this is not something you should rush into. Careful deliberation and a skilled team of aviation experts can spell the difference between success and disappointment. As you proceed, here are some important variables to consider.

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This article was originally published by Bank of America on March 6, 2026.

NAFA member Arcadia Jets shares their latest article on how brokerage services simplify aircraft sales.

Selling an aircraft sounds simple until the process begins. Owners often assume the most difficult part will be finding a buyer, but experienced aircraft owners know that locating a prospective buyer is only one step in a much larger transaction. Pricing strategy, aircraft presentation, maintenance records, market conditions, inspections, negotiations, documentation, escrow, financing, and closing all influence whether a sale succeeds or falls apart.

This complexity is exactly why aircraft brokerage services continue to play an important role throughout the general aviation marketplace. A professional broker helps sellers navigate a process that can quickly become overwhelming while helping buyers evaluate opportunities with greater confidence. At Arcadia Jets, we view brokerage as much more than marketing aircraft. We view it as guiding clients through a transaction that involves significant financial decisions and long-term ownership considerations.

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This article was originally published by Arcadia Jets on July 7, 2026.

NAFA member Arcadia Jets shares one of their latest articles on how aircraft acquisition services support smarter buying.

Buying Aircraft Requires Structured Evaluation

Aircraft acquisition services exist to bring structure to a process that is often fragmented and inconsistent. Buyers navigating the market without guidance frequently rely on incomplete data, which leads to poor comparisons and misaligned expectations.

Unlike other asset classes, aircraft require simultaneous evaluation of technical condition, operational suitability, and financial impact. Without a defined framework, these variables are often considered independently, which results in inefficient decision-making.

Aircraft acquisition services align these factors into a cohesive process. This allows buyers to evaluate aircraft based on mission requirements, lifecycle cost, and realistic market conditions.

Mission Alignment Drives Aircraft Selection

The starting point for any acquisition should be mission alignment. Range, payload, runway performance, and cabin configuration all need to support how the aircraft will actually be used.

Aircraft acquisition services ensure that selection is driven by operational requirements rather than availability. Brokers work with buyers to define mission profiles and narrow the field to aircraft that meet those criteria.

This reduces the risk of acquiring an aircraft that appears suitable on paper but does not perform effectively in real-world operations.

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This article was originally published by Arcadia Jets on June 5, 2026.

NAFA member CFS Jets shares part two of their latest article on when to replace a business jet.

Determining the right time to replace a business aircraft requires balancing operational risks against financial considerations. This article examines how aging jets accumulate downtime and maintenance risks while exploring whether to keep an older aircraft, purchase a newer pre-owned jet, or invest in a factory-new replacement. Through detailed financial modeling and real-world case studies, discover how net operating costs and NPV analysis can guide strategic aircraft replacement decisions.

Previously, we established that a business aircraft should be replaced when its risk profile begins to outweigh the benefit. This inflection point is rarely driven by a single cost, but by the combined effect of rising downtime risk, the growing likelihood of major maintenance events, fuel inefficiency, and growing regulatory and compliance burdens.

As aircraft age, operational volatility grows. More AOG days, longer MRO shop visits, parts constraints, and higher exposure to unplanned disruptions all increase.

When the expected cost of these risks – particularly aircraft downtime that directly impacts the business – approaches or exceeds the capital and financing cost of a replacement aircraft, replacement becomes economically justified.

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This article was originally published by CFS Jets on June 10, 2026.

NAFA member CFS Jets shares part one of their latest article on when to replace your business jet.

Deciding whether to replace a business jet involves more than simply wanting a newer aircraft. The key is evaluating controllable costs such as fuel burn, maintenance reserves, and downtime risk against unavoidable expenses. Aircraft owners should analyze cost escalation trends, maintenance timing, and operational disruption potential to determine if replacement makes financial sense. Supply chain constraints and evolving environmental regulations further influence the decision.

Understanding the Core Decision

Reconsidering a business jet is rarely a matter of whether owning something newer would be better. The discussion should revolve around eliminating otherwise avoidable costs and risks. When your existing aircraft exceeds the incremental cost of switching to another airplane, that should be a decision driver.

Volatile fuel prices, rising maintenance costs, and upticks in aircraft downtime will all weigh heavily in the decision, along with growing ESG and emissions scrutiny driven by policy and stakeholder expectations.

Aircraft ownership has always been finely balanced between financial, operational, and mission fit, but today the escalating costs of parts and labor combined with constrained MRO shop capacity can turn routine maintenance into prolonged AOG events.

Whether to retain or replace an existing aircraft increasingly centers around projecting maintenance cost escalation, timing risk, and the ability of a particular aircraft owner to absorb disruption of a grounded airplane.

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This article was originally published by CFS Jets on May 27, 2026.