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Aviation & Yacht

Part 135 Charter Leaseback — Convert Personal Aircraft to Business

Lease your aircraft to a Part 135 charter operator; charter revenue + business-use documentation supports depreciation.

Overview

Aircraft owner leases plane to a Part 135 certified charter operator (JetSmarter, private brokers, regional ops) who books charters. Owner earns per-hour revenue + retains right to fly at cost. Documented charter hours count toward the >50% qualified business use test enabling bonus depreciation. Watch §280F entertainment-use disallowance (personal recreation flights create disallowance) and hobby-loss risk if perpetually unprofitable. Best for owners flying 100+ hrs personally who can drive 200+ charter hrs/yr.

Best fit
Full aircraft owners$3M+ tax bill owners with existing aircraftAviation-passionate investors
Estimated impact
$300K–$1M year-1 depreciation + charter revenue

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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