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If I exit at the 7-year mark with gains and a depreciated plane, what are my options and tax outcomes?

Updated over a month ago

Decision

What cash you see now

What gets taxed now

What stays deferred

Redeem and walk away

You get $3.5M ($3M stock + $0.5M jet).

• Long-term cap-gain on the $2M stock growth.

• Ordinary income (recapture) on the $0.5M jet depreciation.

Nothing — your deferral ends when you cash out.

Stay in the Pod

No cash today. The Pod sells $500k of stock to cover the jet’s loss and pay down loans.

• Long-term capital gain on your share of the $500k stock sale.

If ~⅔ of each share is built-in gain, ~$333k of that is taxable.

• No depreciation recapture (the jet isn’t sold).

• The remaining $1.5M unrealized stock gain stays deferred.

• Jet recapture stays deferred until the jet is sold or you redeem later.

• You keep flying, and the Pod can refinance or buy new aircraft.

The values here assume $1M minimum investment.

Please read our full disclosures before making an investment decision.

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