When you exit after the seven-year lock-up, the Manager calculates your capital account and pays you out entirely in cash. The Pod almost never sells a jet to raise that cash. Instead, it typically draws from its stock portfolio, credit lines, or cash reserves.
Even though no jet actually changes hands, certain tax rules still applie. Under IRS Section 751, business aircraft are treated as “hot assets.” For tax purposes, it’s as if the Pod sold your share of each aircraft at fair market value on your redemption date. Any gain that reflects earlier bonus depreciation is recaptured as ordinary income and shows up on your Schedule K-1 for that year.
Always consult your tax advisor on how this may affect your individual tax situation.
After you redeem, the fleet remains in service for the other investors. The Pod may adjust flight-hour allocations or charter activity to match demand and keep the fleet appropriately sized.
Please read our full disclosures before making an investment decision.