When do I pay the 7.5 % Federal Excise Tax, and how does Craft help me avoid it?

The 7.5% Federal Excise Tax (FET) only applies to commercial flights.

Craft’s trust-and-lease structure makes each Member the owner or lessee of the plane, so your personal or repositioning flights are not considered commercial. So, no FET owed.

When Craft charters flights to third parties, those are commercial, and we add the 7.5% tax to those fares and pay it to the IRS.