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Buying a partner out on an aircraft?

Adam Answers

Adam answers in November's edition.

QUESTION: Can an aircraft loan be structured as a 2nd Mortgage on house to gain more favorable interest rate and possible a tax deduction?

ANSWER: Most of the lenders we work with are aircraft lenders, meaning they consider the aircraft as collateral, not your home or some other asset. It would be best to discuss with your CPA or tax consultant the legality of taking tax deductions for interest on HELOC money used to purchase an aircraft. Regardless of legality, in general it’s a better practice to use financing commensurate with the asset.

QUESTION: I'm half owner in a Wag Aero acre trainer. We paid 38k this past June. I want to buy my partner out because he wants to do another project. I would need to finance 19k. What say you?

ANSWER: We have several options for kit built aircraft. Lenders require at least 25 aircraft filed on the FAA registry and three comparable listings in order to value the aircraft. Please give us a call and one of our account executives would be happy to discuss the specific options available. 

Have questions for Adam? He is happy to answer them. Submit your questions here.

Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.

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Adam Meredith
Adam Meredith
President of AOPA Aviation Finance Company
Adam Meredith, the longtime president of AOPA Aviation Finance Co., died after a long battle with cancer in December 2023. He is remembered for his passion for helping fellow pilots, leading a team devoted to putting flight training and aircraft ownership within everyone’s reach.
Topics: Financing, Buying and Selling an Aircraft, AOPA Aviation Finance Co

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