Owning a plane may be a dream, but consider the variables and work with aviation experts.
For those who can afford it, private aviation offers convenience, comfort and privacy—and a powerful symbol of your success. Yet with those benefits come many complexities. “From tax considerations to regulatory concerns to methods of financing, there are many paths you can take,” says Jonathan Hommer, Wealth Strategies Advisor and Head of Family Office Planning in the Planning Center of Excellence for Bank of America Private Bank.
Whether you’re an individual considering private aviation or a family office helping to make these decisions, this is not something you should rush into. Careful deliberation and a skilled team of aviation experts can spell the difference between success and disappointment. As you proceed, here are some important variables to consider.
The more you fly, the more the scale tips toward ownership rather than fractional ownership or chartering. A good rule of thumb for owning a plane outright is 200-plus hours of flying annually. If you fly less frequently, fractional ownership or chartering might be a better choice. Yet these decisions are personal to each buyer. For fliers who want a consistent experience, such as the same crew, decor and cabin configuration, ownership may be the way to go even if you fly fewer hours. There may also be intangible reasons for ownership. Some wealthy individuals simply want to own their own plane, customize it with an external paint scheme or create their own internal layout.
Buying a plane is very different from, say, making a large purchase of commercial real estate. Although the costs may be in the same range, an aircraft is a mobile asset, bringing many additional complications. You’ll be subject to regulation by the Federal Aviation Administration (FAA), which has rules governing aircraft operations, maintenance and safety.
An advisor knowledgeable about the aircraft market can help you assemble a “deal team” consisting of aviation attorneys and tax specialists to navigate the complexities and help ensure a successful transaction in a market that’s largely unregulated. “Brokers run the gamut from someone working independently to extremely sophisticated companies with extensive knowledge, resources and data analytics,” says Andrew Rebholz, Managing Director, Global Corporate Aircraft Finance for Bank of America Global Leasing. An advisor can point you toward experienced, reputable aircraft brokers who can help you find the right aircraft for your needs and budget.
While you may have sufficient resources to buy a plane outright, there could be compelling reasons to consider financing. Because of the wealth of the borrowers and the high value of the aircraft, the lending market views aircraft financing as a top-tier asset, so the lending structures and interest rates may be attractive. Investing the money that would have gone toward purchasing the aircraft could generate returns that exceed the cost of financing.
Buyers who plan to use an aircraft primarily for business purposes may claim significant tax benefits, most notably the potential to deduct the full cost of the purchase. The 2025 One Big Beautiful Bill Act made permanent a 100% bonus depreciation deduction for capital equipment purchased on or after January 20, 2025, including private aircraft used for business purposes.1 Bonus depreciation can be a big catalyst for private aircraft purchases. Suppose you’ve sold part of your business. You could deploy the proceeds to purchase a plane for business travel and use the write-off to help offset capital gains from your windfall. You may also be able to deduct costs of operating the aircraft, as long as you can document that the outlays are for business purposes.
But you’ll need to keep meticulous records. For example, to qualify for 100% bonus depreciation, an aircraft needs to be used at least half of the time for qualified business purposes—a rule that requires careful documentation of each trip and passenger, the reasons for each trip and more.2 The IRS also requires all business travel deductions to be for “ordinary and necessary expenses,” rather than anything “lavish or extravagant.”3 Private aircraft owners must be prepared for close scrutiny.
Aircraft used primarily for personal and family travel will offer fewer tax benefits, tax policies vary widely by state, and where you purchase and operate the plane could have a significant impact on your tax situation. Some states defer sales taxes on private aircraft, while others charge a use tax for aircraft bought elsewhere but kept in the state. Depending on the state, you may also owe property taxes. Regardless of how you’ll use your aircraft, keep in mind that aviation tax law is complex, and IRS and state requirements are strict. “Before making any decisions, it’s vital to work closely with someone who’s not just a tax expert, but an expert in aviation tax,” Hommer says.
“A separate trust, created by another trust, could buy and register the aircraft using a corporate rather than a personal trustee. That additional layer can help reduce the chances of someone connecting you to that aircraft.”
A desire to travel discreetly can be an important reason to choose private aviation. But aircraft purchases and the registration of privately owned aircraft, including tail numbers (also known as N-Numbers), are filed publicly with the FAA, and records can reveal an owner’s name, address and other information.4 For some privacy protection, the FAA now enables private aircraft owners to request, through the Civil Aviation Registry Electronic Services website, that their data be withheld from public view. 5
Those seeking greater privacy might consider owning the aircraft through a trust—or even through a trust within a trust, Hommer suggests. “An existing trust will help keep your ownership private, but a motivated researcher might still be able to connect the trustee back to you,” Hommer explains. “A separate trust, created by another trust, could buy and register the aircraft using a corporate rather than a personal trustee. That additional layer can help reduce the chances of someone connecting you to that aircraft.”
Another key consideration is who will take charge of maintaining and operating the aircraft. You can create your own internal flight department, or you can outsource these tasks to an aircraft management company.
Running your own team. Maintaining a flight department entails hiring pilots, crews and maintenance directors and taking responsibility for meeting regulatory requirements. Although this gives you maximum control, it’s akin to managing a complex business.
Outsourcing your team. A third-party management company with expertise in all aspects of private aircraft management may be more cost-effective and convenient. This approach can also facilitate the chartering of the aircraft to outside users, helping to offset your costs. Third-party managers may operate the plane according to the stringent Part 135 FAA regulations, enabling them to fly paying customers. Note that aircraft used exclusively for your own personal or business purposes, with no paying passengers, may operate under the simpler, less-stringent Part 91 regulations.
Regardless of who manages an aircraft, its owners or their family offices are responsible for recordkeeping and oversight. “Tracking how the aircraft is used is critical for FAA compliance and tax compliance,” Hommer says. “If you expect tax benefits, you need excellent documentation of everything.” He notes that in the case of an IRS audit, you’ll have to fully document how your plane has been used. Software specially designed for aircraft owners can help.
Governance also involves establishing well-understood procedures for how the aircraft will be used. “It’s important to set clear expectations and policies around who can use the aircraft, when it’s available, who may travel with you and other questions. When people understand the rules, it creates a smoother experience for everyone,” Hommer says.
Some points to consider if you’re thinking of buying a plane
“Whether it’s balancing the tax benefits of your decisions or understanding all of the complex rules and trade-offs of private aviation, we can help individuals and family offices every step along the way,” Hommer says. As you consider the options, your advisory team can connect you with specialists from Bank of America Global Leasing’s Global Corporate Aircraft Finance (GCAF) division. “As one of the largest financers of private aircraft, we have deep experience in this market,” Rebholz says. “We can introduce you to experienced aviation brokers, attorneys and accountants, as well as aircraft dealers, management and maintenance firms and other service providers.”
Work one-on-one with a Merrill advisor for more insights and personalized guidance. Connect with us today.
1 National Business Aviation Association, “100% Bonus Depreciation, Advanced Technical Implications,” July 28, 2025.
2 National Business Aviation Association, “Depreciation,” September 10, 2025.
3 IRS, “Topic no. 511, Business travel expenses,” last updated October 3, 2025.
4 National Business Aviation Association, “Preserving Anonymity in Aircraft Transactions and Operations,” March 2, 2020.
5 Federal Aviation Administration, “FAA Moves to Protect Aircraft Owners’ Private Information,” March 28, 2025.
Neither Bank of America Private Bank, Merrill, Bank of America Global Leasing or any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Global Corporate Aircraft Finance is a division of Banc of America Leasing, which is part of the global banking and global markets businesses of Bank of America Corporation.
“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC.
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