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What is the “mixing‑bowl” rule, and how does Craft navigate it?

Updated over 2 months ago

The IRS has a rule — known as the “mixing-bowl” — that kicks in if an asset you contribute changes owners within 7 years. If that happens, the IRS taxes any built‑in gains on the asset right away.

Craft keeps it simple and avoids triggering this rule with two clear practices:

Planes stay put for 7 years.

Any aircraft you contribute stays with the same Pod for at least 7 years. That’s long enough to satisfy the IRS rule and avoid immediate taxes.

Exits are always in cash.

When you leave the Pod, you don’t get a plane or stock back — just a cash payout.

That cash is a normal, taxable sale of your Pod interest, but since no property is exchanged, the mixing‑bowl rule doesn’t apply.

Please read our full disclosures before making an investment decision.

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