An advisory opinion has been released by New York in regards to the purchase and leasing of an aircraft under certain circumstances.

It was found that a company can purchase an aircraft tax exempt as a purchase for resale if the company only intends to rent or lease the aircraft 100% of the time. Subsequent rentals or leases of an aircraft are also tax exempt if more than fifty percent 50% of the aircraft’s use is in the provision of air transportation services for hire qualifying the aircraft as a commercial aircraft. (TSB-A_04(11)S, April 27, 2004)

Posted on June 15, 2004