Going from corporation to dual partnership?

[bluesideup]

Hi everyone.

Is anyone familiar with the procedure of selling an acft owned by a corporation to a dual partnership?

What is the best approach, can the original owner / corporation sell to himself and get a partner? How best to go about this?

Thank you.

 

[bradg33]

Best to discuss with a lawyer that can advise as to the corporate issues and potential tax issues in the applicable jurisdictions. In theory, if you control the corporation, you can cause the corporation to sell the airplane to whomever you like (or whatever entity you like), even a different entity owned and controlled by you. What formalities are necessary to accomplish that, and the tax consequences, are much different issues that require professional advice. But if the airplane is already owned by a corporation, assuming all the corporation owns is the plane, why not just sell the new "partner" shares in the corporation? That's a bit simplistic, but it's something you should discuss with counsel.

 

[Sac Arrow]

Corporations sell property all the time. How the corporation handles the tax issues, e.g. a depreciated asset, isn't the buyers problem, nor are the buyer's taxation issues, e.g. sales tax, the seller's problem. The paperwork itself is pretty straightforward. Bill of sale signed by a corporate officer or documentable designee.

(no expert here, just a guy that buys and sells a lot of stuff for the corporation.)

 

[Bell206]

How best to go about this?

Address the aircraft registration sale part separately from the "business" side of the sale. For the aircraft side given you want to move from a corporation to a partnership I would call Registration in Oak City for the best route. But linked an info doc below for reference. The business side would be better to get a local CPA input so as not to leave any tax/reporting issues on the table when the sale is made.
https://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/media/8050-94.pdf

 

[bluesideup]

Hi.
Thanks for the help. I will get some more info about it. It does not look like a simple / straight forward procedure.