Transfering Ownership

I have a friend who wants to gift me his airplane. He's 83 yrs old and is about done flying. Is there a way to transfer ownership without having to pay inheritance taxes?

How about just buying it from him for $1.00 ?

Wisconsin doesn't have inheritance tax, it does however fall under the gift tax laws where the giver, not the receiver, has the tax liability on those amounts exceeding the maximum annual giftable amount.

I would consult an accountant and consider the $1 plus other valuable considerations method. Also be careful of the Wisconsin registration/sales tax. When you transfer the title, you'll be required to show proof of sale and lately they have been cracking down on over-inflated donations and under inflated gifts.

You may consider having the owner form an LLC for the airplane then gift you the maximum amount of non-taxable giftable value in the LLC each year until a "reasonable" sales figure is reached. Just a thought, talk to an accountant.

He could also will it to you without tax consequences.

Most States with a sales tax will tax you the market value no matter what you payed for it.

cubx3 said:

I have a friend who wants to gift me his airplane. He's 83 yrs old and is about done flying. Is there a way to transfer ownership without having to pay inheritance taxes?

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adoption

:lol: :lol: S2D--I tried that at Johnson Crick--Not much interest ---but then my 12 ain't all that purty---but giving up a plane is a lot like giving up a family member :lol: :lol:

Okay, have him give ME the airplane..... 8) Not sure what the gift taxes in MN are like, but I can deal with it.....

Or, like S2D says...adoption is a great plan.

MTV

I wonder if the plane would fall into a lower tax category if the sale / transfer / gift were made as a project rather than an airworthy plane.

Do we have any tax experts out there?

Eric

how about giving it away in separate parts the engine the wings the fuselage. The tax man don't need to know there were all attached to each other.

12Geezer2 said:

:lol: :lol: S2D--I tried that at Johnson Crick--Not much interest ---but then my 12 ain't all that purty---but giving up a plane is a lot like giving up a family member :lol: :lol:

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Some family members might be easier to give up.

Minnesota will hit you 6.5 % sales tax and if you live in Rochester or Duluth or St. Cloud, Bemidji, then you will pay 7 % so the cities can get their cut. However, if you transfer ownership to a sibling or close realitive there is no sales tax ! You need to get adopted by the previous owner !!

It's not me that's worried about the taxes it's the owner.He wants to make sure that I will have ownership without tax or legal hassles if something happens to him.He already has 10 kids so I don't think adoption is a viable option at this time.

have your name legally changed to same as his, so when he kicks the bucket, you can just file change of address.