Re: Re:
Leon,
Attached, please find the January 26th memo on the airplane which wa= sent to you previously. It deals with Part 91 vs. 135 and attendant costs=and income tax benefits. The office feels that with respect to income tax,=Part 135 is more favorable, but not significantly so, i.e., between 0 and $400K depending on use.
Also included are detailed operating costs. These were previously se=t to Jeffrey but not previously not sent to you.
The final note details the FET and sales tax consequences of moving =rom the current structure to a simplified structure. Were we to move to a =ery simple Part 91only structure you could likely save $200K/year but wou=d have to own and operate the plane in your personal name (your insurance is sufficient, but there would be a =ertain lack of privacy). If you held the plane in a sole purpose LLC the a=orementioned savings would disappear. If Jeffrey wants to take a deep dive= we have much detailed material and we would also suggest he speak to Rich.' and our aviation attorney.=/u>
Bottom-line, a lot of work has been done and there is not a compelli=g answer, one way or another. Taking into account income tax attributes, s=les tax attributes and ease of use attributes it's almost a push, =hough I would probably marginally favor Part 135. I believe Jeffrey favors Part 91, which in my mind, is a suffici=nt reason to go that route. We should discuss.
Thanks
it says charter revenue only 312 but letter sa=s apollo hours were 42 at 18k each hour?
richard you are an accountant, i only w=nt numbers. accurate fully detailed numbers. te=ling me the amount is slight? is not a number, telling=me the rate is 7.5 percent is not useful without the full description, .=C2 putting charter revenue in as minus costs. is not helpful, putting=fuel in at 975 an hour is just wrong.? categorites of " =ther" makes no sense without detailed footnotes., expl=ining why payroll taxes for a month is not 1/12 of the year as oppos=d to 1/10th. why have a variance column, if there is no bud=et.? where are total costs per hour? you have fixed and =ariable. why have speed? silly silly silly