How Aircraft Leasing Works

Aircraft leasing works much the same as auto or real estate leasing. The owner of the asset – the lessor – allows you to use the aircraft for a stated period of time for which you’ll pay the owner an agreed upon amount of money. Typically, the lessor will have the ability to take advantage of appropriate tax write off options. Leasing a private jet for personal use has no inherent tax advantages. However, if you’re considering leasing a personal jet for business purposes, consult your tax adviser to learn of deductibility of the costs to lease and operate the aircraft. Be cognizant of the fact that, as when leasing an auto, there may be conditions applicable to the return of the aircraft when the lease expires. As you might imagine, the consequences are typically financial, similar to returning a vehicle upon which you’ve put 40,000 miles with a lease agreement that stipulated 24,000 miles. Yet, aircraft leasing may be less expensive than paying aircraft sales prices and still provide you with exclusive of a luxury aircraft.