Fwd: Re:

Leon,

1. Attached, please find the January 26th memo on the airplane which wa= sent to you previously. It deals with Part 91vs. 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.

2. Also included are detailed operating costs. These were previously se=t to Jeffrey but not previously not sent to you.

3. 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>

4. 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

please no=e

it says charter revenue only 312 but letter sa=s apollo hours were 42 at 18k each hour?

richard you are an accountant , i =nly want numbers . accurate fully detailed numbers. . =AO telling me the amount is slight ? is not a number , t=lling me the rate is 7.5 percent is not useful without the full descriptio=, . putting charter

revenue in as minus costs. is not helpful, . putting fuel in at 97= an hour is just wrong. ? categorites of " other" . rakes no sense without detailed footnotes. , explaining why pay=oll taxes for a month is not 1/12 of the year as opposed to 1/10th. . why have a variance column , if there is no budget.?=C2 where are total costs per hour? you have fixed and varia=le. . why have speed? silly silly silly

You refer to a Jet Aviation invoice f=r which I do not generate. I do not take ownership for Jet's=manner of reporting but there is a review of the amounts presented in such invoice, eg JH reviews each month before approving for payment. =AO The FO also reviews. I will work with Jet to improve its in=oice. I sent yesterday an explanation of fuel amounts on the Decembe= invoice. As you will note, Jet invoices have date cut off and not all charges for each flight will be reported in the month =he flight took place. Accordingly, monthly ratios may have silly results.<=>

I indicated earlier I was in transit =nd would provide ALL amounts as you request in your numerous emails. I can=tell you that the leasing cost on an hourly basis is $200. Jet haircuts the charter payment it receives from Apollo/ LDB by =200. There is annual charter administration fee of $2,000. Part 135 =ours were 111.4 for 2015. I am compiling the information/ clarification yo= requested.

more finger pointing . now its jh =ssue, this is bullshit.