Owning a Hangar

luvflyin

luvflyin

Touchdown! Greaser!
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Luvflyin
I just bought a hangar. A prepaid 90 year lease actually, with options to renew twice for 270 years total. It has two airplane's with renters already in it. Someday I may have my own airplane in it. what are the Pros and Cons? Form an LLC? Keep the ownership in my name? Depreciate it or not? Other questions I should be asking but haven't thought of yet?
 
If you are renting it out you MUST depreciate it whether you hold it personally or in an LLC. An LLC might provide you a small amount of liability protection but you can't dodge responsibility for your own negligence.
 
luvflyin said:
I just bought a hangar. A prepaid 90 year lease actually, with options to renew twice for 270 years total. It has two airplane's with renters already in it. Someday I may have my own airplane in it. what are the Pros and Cons? Form an LLC? Keep the ownership in my name? Depreciate it or not? Other questions I should be asking but haven't thought of yet?
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I can't answer that but I hope you're still flying to renew the lease. What airport is this? I'm surprised an airport is writing 90 year leases on hangars. They're usually 30 years.
 
Brad Z said:
I can't answer that but I hope you're still flying to renew the lease. What airport is this? I'm surprised an airport is writing 90 year leases on hangars. They're usually 30 years.
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LOL. I probably wouldn't last out a 30 year lease. What makes it work is that the Lease is a negotiable instrument. I "bought" it from the previous lease holder. It's at Lenhardt, 7S9, in Oregon.
 
Yeah, my thoughts exactly. The FAA is really "encouraging" shorter term leases. I would never be able to get away with writing a lease like that today at our airport.
 
BGF_Yankee said:
Yeah, my thoughts exactly. The FAA is really "encouraging" shorter term leases. I would never be able to get away with writing a lease like that today at our airport.
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One of the questions I had is had they ever accepted Federal grant money. I wanted to have some assurance the airport would stay around for awhile. They hadn't but I'm not worried that the neighbors or a subsequent owner will shut down the airport. It's value as general storage or other commercial uses protects the investment.
 
luvflyin said:
One of the questions I had is had they ever accepted Federal grant money. I wanted to have some assurance the airport would stay around for awhile. They hadn't but I'm not worried that the neighbors or a subsequent owner will shut down the airport. It's value as general storage or other commercial uses protects the investment.
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OK, that makes sense. The FAA doesn't like long term leases because it effectively cedes the airport sponsor's rights and powers. For example, all it takes is one poorly sited hangar to mess up a new runway or instrument approach procedure. We saw that a lot when WAAS LPV came along as a lot of small airports weren't protecting their approaches, figuring they'd never have a precision ILS approach. Then LPV came along, offering ILS-like minimums with no ground based expenses...except clearing the approach. For some airports, it was too late as they had in some cases already allowed development.
 
flyingron said:
If you are renting it out you MUST depreciate it whether you hold it personally or in an LLC. An LLC might provide you a small amount of liability protection but you can't dodge responsibility for your own negligence.
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I looked that up. Looks like you don't have to actually depreciate, but when you sell they will assume you did and calculate depreciation recapture as if you did. So it would pretty much be insane to not do it.
 
if you are renting space you MUST buy "hangar keepers legal liability insurance" hard to find and costly . and any corporate Vail will be pierced. you will be personally liable . if you are destitute than no problem .some will say that you can protect yourself by being a NAMED insured on all renters aircraft policies,this is not true. i have retired but can give you a good guy to call. IM me
 
midlifeflyer said:
What does skiing or drilling holes in a ski mountain have to do with the liability of the members of a limited liability company?
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120522-otrc-dwts-wk10b-driver-judges-score.jpg
 
There are a few airports where you buy the land, you get a warranty deed (and have to pay property taxes) when you buy a hangar. But most, you lease the ground and "buy" the hangar. Some such arrangement....

What should you do with your hangar? Put an airplane in it of course!
 
hotprops said:
if you are renting space you MUST buy "hangar keepers legal liability insurance" hard to find and costly . and any corporate Vail will be pierced. you will be personally liable . if you are destitute than no problem .some will say that you can protect yourself by being a NAMED insured on all renters aircraft policies,this is not true. i have retired but can give you a good guy to call. IM me
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Wow! Is simply renting a space to store an airplane really that hazardous??!! More and more I think this country is doomed. The lawyers and bureaucrats have taken over. I fantasize about a group of like minded folks that still believe in liberty, freedom and personal responsibility can take over a small failing country or region somewhere and start the American dream over again.
 
luvflyin said:
I looked that up. Looks like you don't have to actually depreciate, but when you sell they will assume you did and calculate depreciation recapture as if you did. So it would pretty much be insane to not do it.
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Yes, this is true. The IRS is fine that you don't take the mandatory depreciation but as you say, they'll still make you recapture it even if you omitted taking it.
 
hotprops said:
if you are renting space you MUST buy "hangar keepers legal liability insurance" hard to find and costly . and any corporate Vail will be pierced. you will be personally liable . if you are destitute than no problem .some will say that you can protect yourself by being a NAMED insured on all renters aircraft policies,this is not true. i have retired but can give you a good guy to call. IM me
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IM sent. I think. I started a conversation. Couldn't find any thing that said "IM"
 
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