Buying Half a Plane (Paperwork Question)

[iamtheari]

I have decided to buy into a plane (PA-28R-180) that the current owner wants to sell half of. We have decided to be joint owners. I know that, to transfer a plane from A to B, the required paperwork consists of duplicate original 8050-2 Bills of Sale, an 8050-1 Aircraft Registration (that you can only get from the FSDO), and the back of the current registration card.

Is the paperwork or process at all different when you transfer from A to A and B?

 

[SkyDog58]

A is the seller.
The buyer could be A & B or the LLP or LLC or whatever you decided to do.

 

[James331]

That ^

And be sure to review the FAA CD and sign a purchase agreement, best to not find out down the road the plane is owned by A, B ... and C, who has a lien on it

 

[MAKG1]

Don't you need the 337 form to prove that the plane is still airworthy after you cut it in half?

 

[Hank S]

I have decided to buy into a plane (PA-28R-180) that the current owner wants to sell half of. We have decided to be joint owners. I know that, to transfer a plane from A to B, the required paperwork consists of duplicate original 8050-2 Bills of Sale, an 8050-1 Aircraft Registration (that you can only get from the FSDO), and the back of the current registration card.

Is the paperwork or process at all different when you transfer from A to A and B?

Seems like that was how we did mine when I bought the first half of it. But I was so green I didn't know what to do other than sign where I was told to.

 

[iamtheari]

Don't you need the 337 form to prove that the plane is still airworthy after you cut it in half?

I'll keep my half intact with the other half for the time being, just for airworthiness purposes.

 

[iamtheari]

A is the seller.
The buyer could be A & B or the LLP or LLC or whatever you decided to do.

That's what I figured but wanted to check before filling out paperwork for A -> A&B if there turned out to be a simpler form for adding an owner as opposed to change of ownership. Sounds like there's not, so the standard process applies.

Thanks everyone.

 

[weilke]

How does your state treat this from a sales/use-tax perspective ?

Sometimes it can make sense for the current owner to transfer the plane into a new entity (corp,llc)and you execute a stock (or membership) purchase agreement. That makes sense if the state doesn't tax both:
- 'non arms length transactions' such as the transfer into the LLC
- stock/membership purchase transactions.

And sometimes this doesn't make sense. Depends on your state.