Re: [External] Re: Plane
After fridays discussion
I suggest you focus on large issues first. . the discussions re personal use of plane . parties travel. may be relevant at the tippy tip of the margins but these answers should flow from the structure. On what for will you use the deduction. ? which business. , its structure. different buisnesses etc.
Barry , what you will find is that there is very few answers to be found on point as people in leons position rarely make cases to tax court. exception being estate issues. . planes owned by farmers salesman, bankers. are usually small planes. meaningless to leons issue. large bi gets are usually owned by corporations. . the facts. there are approx 400,000 planes in the states. out of that large number only about 13,000 total private jets. out of that class only 2000 large jets and most owned by corporations. how many people have business of leons size . not including his art work.
You asked , me what do we do now. as I told Brad years ago. First and foremost is accurate numbers presented in an organized fashion. that is 80 percent of the grunt work. Once all the numbers are in shape ie materials for the building of the financial architecture. . Leons goals must be addressed and programatic . this takes hours of discussion. . next . plans are drawn up, . modifications are made, issues of sec regulation, tax, control, succession. mechanics. all need to be planned and adjusted to meet the goals.
You need to recognize that there are few , very few examples of the house that in leons case needs to be re built. most people with leons wealth have a serious family office with a huge stock portfolio. , not art. and of those , few hold dormant assets ie apollo. . Its been ten years since apollo went public. and the house needs total renovation. upgrades in tech, security, and the family has changed all very similar to architecting a house after the children have grown and left.
I hear you. There is no blue print. I think our numbers are finally thorough and accurate. We haven't discussed it much, but technology and security have been a huge focus for me since I joined Elysium. Making slow but steady progress.
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there has been little if any proper planning for tax this year and next. = this needs to be done after the program and materials are put in form
One problem is that we want Leon to tell us what art he is interested in se=ling. I don't think he can do that. We should tell him whether we want him=to sell either his gains or his losses and why.
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barry, perfect example of what i have been trying to explain. without c=ntext the question makes little sense. ex if all is income is ordinar=. selling things at a loss does nothing . however if he is gettin= more capital gains next year. you miight generate losses and carry them =orward or back. if we think the tax rates will change we might create f=ctiioous gains. and use the loss but have a higher basis for next year. = if the loss in on the trust side , it is a benefit to the future tax of=the children. sorry to be so long winded but at least i am consistant=:)
same idea to make sure boat sale , plane sale art sale . all produce the =est after tax result.
Plane sale is minor loss.
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not necessarily . talk monday.
e never too c acce erated depreciation due to lack of passive income. Unuse= depreciation has been carried forward. Basis is therefore a little high.
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yes , I would ask that you go through and see exactly which years you took= what and it produce a real szable benefit. . form a new entity for=the contract signing. have that entity have the right to assign.
We are having Elysium buy it. As long as it is freely assignable, does it h=ve to be a new entity?
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new entity
May not be possible as documents have to be signed tomorrow (our drop dead =ate). We are not going to buy the plane in Elysium. We will assign its rig=t to buy the plane before we close.
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I would suggest a delaware Ilc , where leon is sole member. I dont beli=e in drop dead dates. and rushing usually is not wise ( slow and tho=ghful . ) wire the deposit that should be enough. airplanes are fin=cky.
They have our deposit. I don't like going past the drop dead date because i= another buyer has reached out to them at a higher price it gives the sell=r an excuse to walk. We can definitely have the Delaware LLC buy the plane=though.
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im told the rolls royce buy in was 1.2 m not 2 m and the apu 50k is tha= not right/
We got RR down to $1MM and then $200-300K per year for a while. I thought =hat includes the APU, but will check.
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