To invest in property, or aircraft? TB21 for 240k euros, and other overpriced aircraft.

Peter,

i don’t know about an FAA inspector but under a normal annual a gear swing should be done. As the guy apparently wrote the airplane airworthy, I would assume that he would have looked at the gear, as if it would fail, he’d have some answering to do.

Having said that, I agree it should be looked at as fast as convenient. But I would not take the airplane out of circulation without a 1:1 inspection at the airplane. We can only see what the pictures show and we do not have any hands on way of checking just how serious this is.

RobertL18C wrote:

although a useful source of depreciation for self employed using a limited company

What’s the point of that? When you calculate corporation tax depreciation is added back, so depreciation has an effect on the P&L filed but no effect on tax paid

Mooney_Driver wrote:

i don’t know about an FAA inspector but under a normal annual a gear swing should be done. As the guy apparently wrote the airplane airworthy, I would assume that he would have looked at the gear, as if it would fail, he’d have some answering to do.

I’ve never seen or heard of an annual inspection on a certified retractable gear N-registered light aircraft that did not include jacking the plane and swinging/inspecting the gear. This is one reason I’ve stayed clear of retractables – I have a fair bit of stuff to maintain and don’t want maintenance or inspection on any of it to be any more involved than necessary.

I can’t imagine the costs to pay somebody to overall the gear etc as shown here. In my US experience this would normally be a owner project, maybe part of a general overhaul of the plane done over an extended period (months to years). I’ve heard jokes made about handing a project like this over to a Beechcraft dealer or similar, and the costs that would be involved… the implication being that ‘nobody’ actually does that…

BTW If the gear failed after an FAA annual, if there were any meaningful investigation on a light plane (which I think is unlikely) I think the discussion with the IA iwould be a quick phone call to gather any useful info he may have, versus him “having some answering to do”

Peter wrote:

Usually it isn’t, however…

It is every time mine has an annual. I know, I was there the last 8 times.

Silvaire wrote:

BTW If the gear failed after an FAA annual, if there were any meaningful investigation on a light plane (which I think is unlikely) I think the discussion with the IA iwould be a quick phone call to gather any useful info he may have, versus him “having some answering to do”

Maybe not to the FAA but certainly to those investigating the incident including the insurance.

Peter wrote:

I am not an accountant but I thought that setting up assets on which the capital allowances exceed the depreciation is the world’s second oldest profession

OK if you have an asset where real depreciation is less than the capital allowances and you sell it you will realise profit on the sale and the allowances will be clawed back by a balancing charge.

HMRC are fairly sophisticated you know, they don’t leave loopholes open!

https://www.gov.uk/capital-allowances-sell-asset

In the example given of a simple asset being leased to a third party there is still an after tax cash flow benefit. If you do not intend to sell and just keep operating and maintaining the tax bill of any theoretical liquidation gain is many years in the future.

I also bought a dog of an aircraft a few years back. On the bright side, it is a good learning experience as it seems you’re also finding out!

kwlf wrote:

a dog of an aircraft

What type?

Yes it is a good learning experience and Alex (as well as you) will know a LOT more about their airplanes than the guy who bought one brand new.

Mooney_Driver wrote:

EGCW
Mooney_Driver 17-Apr-18 18:40 #100
kwlf wrote:
a dog of an aircraft
What type?

Please let it be a Beagle Airedale!