Need a Tax Deduction?

100% of purchase price

The Tax Cuts and Jobs Act of 2017, "The Tax Bill", passed in December 2017 added a provision for 100% bonus depreciation on Qualified Assets, both new and used, placed into service after September 27, 2017 and before January 1, 2023 when a phaseout begins.

Highest resale value

According to the Aircraft Bluebook Digest and an analysis conducted by Rolland Vincent Associates, PC-12 owners enjoy one of the highest resale value retention rates in all of business aviation. Even during the post-2008 recession, the number of pre-owned PC-12s listed for sale has hovered around an extremely low four percent of the global fleet, while five-year old aircraft retain more than 80 percent of their original retail value.

Gold Rated Aircraft Part 135 Operated

The third-party, independent ARGUS rating system looks at a charter aircraft operators actual safety and compliance history, and through due diligence produces a grade for that operator. Operators that have a safety history equal to or greater than their peers are provided with an ARGUS Gold Rating. 

Charter Revenue

The operator currently pays $1100 per hour as revenue

Owner Benefit

The owners have the ability to determine how they handle personal or busiess usgae of the aircraft net cost per flight hour about $700

FAA 150 hr Inspections

The FAA requires the PC-12 to have inspections every 150 hours ($150,000) and our performa sets aside about $18,000 per 150 hour inspection

High Resale Value

 It retains 80-85% of its selling price after 10 years given average use, better than comparable turboprop or business jets and it sells 40% faster. 

Owner Expenses

The owners pay $1,800 per month for aircraft mangement, $1,000 per month for Hangar and $1,165 per month for Insuracne

Charter Hours

The operator can double the fleet and still not over all the demand, the aveage annual usage per aircraft is about 450-500 hours

Engine Reserve

The entire Buff interface is fully customizable to fit your style and mood.

Tax Advantages

Purchases after September 27, 2017 100% bonus depreciation is available for new and used equipment. In the past, bonus depreciation was only available for new equipment.

Your Choice on Oportunity

There are several ways to take advantage of the 100% tax deception bonus. With so many interested investors several verticals have opened. Regardless of the strategy you can capitalize on the tax deduction and generate a return on investment with security in the asset. 

As you will read on this site, the Pilatus holds its value better than another aircraft in the market place. If you buy a used aircraft the value will only be reduced by the hours left on the engine before major overhaul. We take all that into account when buying aircraft and future revenue available. Typical purchase prices can range from 2MM to 5MM depends on the deduction you are looking for. You can finance a portion and arbitrage the difference or purchase outright and protect the downside of the investment with the asset as well as generate a return on investment.

2004 PC-12 Ready to Close

1/2 Partner Wanted

The program called for a 1/2 partner to invest $250,000. The amount depends on the aircraft selected and the banking solution used. The down payment can be between 20% and 30% of the purchase price. The 100% depreciation is split among the two partners. There is now a possibility to dilute with additional partners and there are opportunities to receive more of the depreciation. The partners will have to provide financials and guarantee the loan amount.

Charter Company

Specializes in local, regional, executive, and personal air travel, providing clients with the opportunity to reach destinations in 1/3 the time of commercial air travel. They feature a 300 MPH Pilatus PC-12 TurboProp with the latest avionics, safety, and comfort. Locations currently include, Florida, Texas, Atlanta, and Tennessee More every day.

Pilatus PC-12

In June 2010, Pilatus announced that the 1,000th PC-12 had been delivered. By August 2013, the worldwide PC-12 fleet had accumulated a combined total of 4 million flight hours and 1,200 PC-12s had been delivered to customers. Just over a year after the 1300th, the 1400th PC-12 was delivered in July 2016. The fleet has accumulated 5.6 million total flight hours since certification, and 1 million flight hours for the 630 PC-12 NG since its introduction in 2008. As the fleet logged over 6.8 million hours, the maintenance interval was raised from 100/150 hours to 300 and a new maintenance plan reduces labor by 20% to 40% to lower direct operating costs.

Does My Aircraft Qualify for 100% Bonus Depreciation?

To qualify for bonus the asset must be eligible for MACRS depreciation. One of the requirements is that the asset is not used predominately outside the United States. Therefore, additional due diligence is needed for aircraft operations with a large international component. Another requirement for Qualified Assets is the IRC 280F 50% Qualified Business Use Test. Qualified business use means any use in the taxpayer business except for the few exceptions put in IRC 280F(d)(6)(c) which includes leases or compensatory flights to a 5% owner and related parties. IRC 280F(d)(6)(c)(ii) has a special rule for aircraft that states, if at least 25% of your flight activity is for the core business operations/qualified business use then you are allowed to include compensatory flights (such as those included in the annual SIFL calculation) and other flights for leasing to a 5% owner and related parties that normally would have been excluded under IRC 280F(d)(6)(c)(i) in calculating the 50% test.

Program Proforma

*450 Hours based on current usage on other aircraft in program

**No owner usage in model

Lets discuss more

If you are reading this you have the approriate contact information. With all of the interst in the program we can match you up with something that will work for you.


FAQ's

Q1. Will the 135 Certificate Holder guarantee a minimum number of hours?

A. Simply not something the part 135 management company can do.

Q2. Can the owner's flight time be included in the financial model?

A. A separate model for you based on your requirements can be prepared and you can see a more complete version.

Q3. Pilot hours are expensed at $750/hour on the financial model. Is this for two pilots?

A. The cost is $500 for 14 hours for one pilot and $750 for two pilots for 14 hours. If you look on the financial model (proforma) you will see $750 on left side of proforma next to (2 Pilots) but that is a control number and not per hour. Next to it, you will see $250 and that is the number we use in the proforma when owner usage is calculated, if you look towards top of model on left side you will see average mission (3) to calculate the numbers correctly we needed a baseline, so I concluded the average flight would be 1.5 hours, 3 hours round-trip thus the pilot cost would be $250 per hour on an avenger trip.

Q4. Does management have fuel contract?

A. Management has fuel agreements at the FBO's where Plane is hangard at; most of the FBO's will pass on Corporate Aircraft Association (CAA) membership pricing. You can typically only use CAA if your plane is managed under part 91. The Charter Company does not use enough fuel to have a private contract. Cost plus is the norm.

Q5. How long a term is Management Company agreement?

A. Aircraft management fee is $1500 per month and an annual agreement.

Q6. Is there a pro forma balance sheet? Especially showing treatment of depreciation and reserves.

A. There is not, we will put one together. But reserves can be treated how we want, preferably left in the company. Excess NOI would be distributed to the partners to manage at a personal level. Depreciation can be determined by partners as needed.

Q7. Can you provide more information on the Part 135 Certificate Holder. Importantly, their strength and viability.

A. Available with a NDA, however the Part 135 we work with hold a Gold Rating from ARGUS. What is an Argus Gold Rating? Third-party, independent ARGUS rating system looks at a charter aircraft operators actual safety and compliance history, and through due diligence produces a grade for that operator. Operators that have a safety history equal to or greater than their peers are provided with an ARGUS Gold Rating. They were founded in 2003. One of their strengths includes a management dedicated to the Pilatus airframe and multiple relationships with outside firms such as Jet Smarter that use them for charter.