Don't Treat Your Aircraft Like Other Assets stock.adobe.com/Lukas Gojda Thinking that you can treat your business jet like other assets is a mistake. Aircraft are subject to unique requirements, and using the same structures and strategies you have in place for other assets may result in regulatory violations, loss of tax deductions or exemptions, loss of insurance coverage, and other unintended consequences. Some of the ways in which the laws applicable to aircraft differ from other assets are: Common Ownership Structures Owning business assets in sole-purpose entities is a common business structure that can align with many business and tax goals. However, there is a unique prohibition that complicates the use of this structure for aircraft. The FAA prohibits sole-purpose entities from operating aircraft under Part 91. If the aircraft is owned in a sole-purpose entity, operational control must be transferred to another party eligible to operate under Part 91. Attempting to own and operate an aircraft in a sole-purpose entity with the goal of providing liability protection will backfire because the operation violates the FAA regulations, which may lead to a loss of insurance coverage and give rise to an argument to pierce the corporate veil.