The sale of an interest in an aircraft-owned partnership normally results in a normal income treatment to the extent that the amortization of the aircraft tax is greater than an economic amortization. Subject to certain partnership elections, the purchaser of an interest in one company is generally entitled to strengthen the underlying aircraft interest base and begin to depreciate its proportionate costs regardless of the remaining bases of the other partners. The individual is always responsible for his own negligence. Under the partnership uniform, they are also responsible for the negligence of their partners. If the aircraft is in general partnership (whether the underlying partnership agreement is written or not), the partners are generally responsible for each other. Co-ownership can also be considered a partnership operation; As a result, it offers little or no increase in liability protection. The company`s stock market ownership and ownership offer considerable protection against the negligence of a co-owner. Since adequate liability insurance is generally not available for air operations, except for professional flight services, liability should play an important role in the design of the common aircraft owner. If one or more users of the aircraft intend to spend it on commercial use, the consequences of income tax in the form of the condominium become critical. Co-owners of commercial real estate are generally taxed as partners in a partnership, whether or not they have a formal partnership agreement.

Like partners acting under a formal agreement, co-owners can normally allocate income or deductions for income tax purposes, provided these endowments are in accordance with the economic agreement between the partners. In general, the Internal Revenue Code`s Sub-Chapter K Partnership Rules are designated for considerable flexibility, even if they are limited by certain anti-abuse rules that may apply regardless of the absence of abusive intent. Another important feature of partnerships is that the treatment of real estate is determined as a business or a personal partnership, and not at the level of the individual partner, which means that a partner`s personal use may lead to the non-consideration of deductions compared to other partners who use the aircraft only to businesses. Once you have opted for a co-ownership agreement, your next important step will be to clarify the obligations of each co-owner. We strongly advise you to take the time to draw up a list of the „basic rules“ that any co-owner must comply with. The next step is to lead this list to a lawyer who can develop a co-ownership agreement binding all the co-owners. The extra time and relatively low additional cost it entails will far outweigh the risks of divergence and misunderstanding that will occur on the street.