1. Early exit (before year 7)
If you sell or transfer your Pod units before the seven-year lock-up ends, it triggers immediate taxes:
You must recognize any appreciation in your units as capital gains.
You must also recapture (pay back) any aircraft depreciation you previously claimed, as ordinary income
Early cash-out accelerates taxes and forfeits the program’s built-in deferral.
2. Your choice at the seven-year mark
When the initial lock-up ends you face two options:
Option | Tax items today | What stays deferred |
Cash redemption | Long-term capital gain on full appreciation + aircraft depreciation recapture as ordinary income | Nothing — deferral ends |
Roll into the next Pod | Long-term capital gain only on stock sold to reset the fleet | Aircraft depreciation recapture and remaining built-in stock gain continue to be deferred. |
Note: In-kind redemptions (receiving a basket of securities instead of cash) are only available after completing to consecutive Pods (10 years).
3. How the “reset” works if you roll
If you stay invested, the Manager:
Sells just enough stock to cover any jet depreciation and repay debt.
Re-leverages the fund to purchase newer aircraft for the next cycle.
Rolls your capital account forward, keeps tax deferral alive, and issues you a fresh block of flight hours for the new seven-year term.
Bottom line
Exit early - pay taxes immediately, lose deferral.
Exit at 7 years - choose cash (taxable) or roll forward (deferral continues).
Exit after 10 years - option for in-kind stock basket to extend tax control further.
Talk with your CPA before deciding. The right path depends on your liquidity needs, tax situation, and appetite for continued private-jet access. Our team can also help you weigh your options.
Please read our full disclosures before making an investment decision.