Buying a plane 101?
Posted by CJ78675309@reddit | flying | View on Reddit | 16 comments
I am looking to buy a plane to learn how to fly. Surely there is a proper "way" to do this and have added protection tax and liability wise. I'm retired and have no income other than SS, and IRA withdrawal. The plane would also be paid for with IRA funds.
BigBadPanda@reddit
Things I’ve learned after buying an airplane:
If you want to fly: rent
If you want to clean planes: buy
FridayMcNight@reddit
If you're piloting the airplane, you (as pilot) are liable for damages your flying causes to other people regardless of the ownership entity. There is no way to dodge that. A good mitigation for personal liability is to have as much of your money in so called "judgment proof" accounts as possible, which it sounds like you already do.
A consult with a tax specialist with knowledge of your financial situation would give you credible answers, but since you have no business income, there is probably no tax benefit to be had in owning an aircraft.
Taking a vacation to a place where you can rent and train is probably the most sensible option, but you certainly can buy a plane. There's a nontrivial learning curve that goes along with that (beyond learning to fly).
How much are you willing to spend on a plane, and what's your risk tolerance for unscheduled $30k expenses?
FridayMcNight@reddit
If you're piloting the airplane, you (as pilot) are liable for damages your flying causes to other people regardless of the ownership entity. There is no way to dodge that. A good mitigation for personal liability is to have as much of your money in so called "judgment proof" accounts as possible, which it sounds like you already do.
A consult with a tax specialist with knowledge of your financial situation would give you credible answers, but since you have no business income, there is probably no tax benefit to be had in owning an aircraft.
Taking a vacation to a place where you can rent and train is probably the most sensible option, but you certainly can buy a plane. There's a nontrivial learning curve that goes along with that (beyond learning to fly).
How much are you willing to spend on a plane, and what's your risk tolerance for unscheduled $30k expenses?
400Volts@reddit
Rent for the first 20 hours of training to see if you even like flying enough to buy your own plane
Santos_Dumont@reddit
Airplanes require constant maintenance and yearly inspections. You need to pay for a place to keep them. I knew it was time to sell my first airplane when I spent $12k maintaining it during COVID and hadn’t even flown it. An airplane really isn’t a thing you want to buy if you’re on a fixed income.
pronghornpilot@reddit
I have two small airplanes and I do not recommend buying one to learn in unless you already have a supportive aviation community. Owning an aircraft is a separate hobby and a separate education from learning to fly, which is enough on its own.
redditburner_5000@reddit
That's a great way to put it.
Wemest@reddit
I would not advising buying right away until you get a feeling for your ultimate use. There are so many variables and options that frankly you are unaware of at this stage. Get your private, rent and experience differ aircraft and avionics before shopping.
th535is@reddit
I’d strongly recommend renting while learning and not buying until you somewhat know what you’re doing.
Reasons: 1) Your first landings will be rough, better to beat up the busted old rental plane. 2) Your plane will break. With a rental, you can just hop in a different one. 2a) Your plane will break and be down for weeks for various reasons. This will slow down your training. 3) An appropriate trainer plane will feel like a rocket ship for the first few hours. Once you know what you’re doing, it will feel very slow. You will want something faster once you are done with training.
appenz@reddit
If you have flight schools in your area, I'd recommend initially renting and only buying once you have your license. At that point you have a much better idea about the missions you want to fly and what kind of plane that requires.
pilotjlr@reddit
Most people don’t make it all the way to getting a pilot’s license. OP, at the least see if you make it to first solo before you buy a plane.
JSTootell@reddit
I know a guy who owns a plane, and I'm under the impression he's been working on his license for YEARS.
I was blown away when I heard him talking about the upgrades he's made. Only to learn later that he doesn't have a license yet.
flyingron@reddit
First, get a prebuy.
Use an escrow (either one of the aviation specific ones or a knowlegeable bank or attorney).
There's no real federal tax issue (you'll obviously have to pay taxes on your IRA distribution unless it's a Roth). What happens to you statewise depends on the state and various details on the transaction. Best to talk to someone in your state that's been through it.
Don't forget to have insurance lined up before you close.
Undesrtand that renting is probably going to be most cost effective at this point (though not as convenient or fun).
KCPilot17@reddit
There's no added tax or liability (except insurance which you pay for). It's just like a car if using for personal use.
What's your budget? I hope that IRA is pretty fat if this is what you're trying to do.
TxAggieMike@reddit
Lots of good material out there from AOPA and others.
Once you decide on a manufacturer, they type clubs have even more details worth knowing.
rFlyingTower@reddit
This is a copy of the original post body for posterity:
I am looking to buy a plane to learn how to fly. Surely there is a proper "way" to do this and have added protection tax and liability wise. I'm retired and have no income other than SS, and IRA withdrawal. The plane would also be paid for with IRA funds.
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