Here's an excerpt from an article in Monday's Irish Independent.
It's about how us overtaxed PAYE workers can avoid tax just like the self-employed high earners.
Does anyone have an opinion on the scheme mentioned? How feasible is it.
How risky is it. How do I join it?
"... Many Irish people are thinking of buying a holiday home, but given the slowdown in the market, and the high cost involved, maybe a more interesting way to invest your cash is in a boat - or even a plane.
One accountancy firm is looking at putting about 20 investors into a deal to purchase a second-hand Lear jet.
They cost around €4m. The jet would then be leased to a company to charter it. The investment is €200,000 each, or €40,000 in cash - finance could be secured for the rest.
The jet is then leased to the charter company under such terms that the loans will be serviced and the investment partnership that owns the jet breaks even.
The partners in the investment will also be equity holders in the leasing company, so the lease terms may appear to benefit one party over another.
However, as the owner of a piece of plant and machinery, the partners will be entitled to use the excess capital allowances against their own tax.
At 15pc allowance per annum divvied up for each individual's share, this leaves each partner with capital allowances of €30,000 per annum for the first six years and €20,000 in year seven to write off against all income.
Providing the jet is properly maintained, it can continue flying for years and its value does not fall very much. After the seven years the asset can genuinely start to make a significant return, having cost the investors nothing in real terms...."
Full articles is at http://www.unison.ie/irish_independent/stories.php3?ca=299&si=1501603&issue_id=13235
Ste
It's about how us overtaxed PAYE workers can avoid tax just like the self-employed high earners.
Does anyone have an opinion on the scheme mentioned? How feasible is it.
How risky is it. How do I join it?
"... Many Irish people are thinking of buying a holiday home, but given the slowdown in the market, and the high cost involved, maybe a more interesting way to invest your cash is in a boat - or even a plane.
One accountancy firm is looking at putting about 20 investors into a deal to purchase a second-hand Lear jet.
They cost around €4m. The jet would then be leased to a company to charter it. The investment is €200,000 each, or €40,000 in cash - finance could be secured for the rest.
The jet is then leased to the charter company under such terms that the loans will be serviced and the investment partnership that owns the jet breaks even.
The partners in the investment will also be equity holders in the leasing company, so the lease terms may appear to benefit one party over another.
However, as the owner of a piece of plant and machinery, the partners will be entitled to use the excess capital allowances against their own tax.
At 15pc allowance per annum divvied up for each individual's share, this leaves each partner with capital allowances of €30,000 per annum for the first six years and €20,000 in year seven to write off against all income.
Providing the jet is properly maintained, it can continue flying for years and its value does not fall very much. After the seven years the asset can genuinely start to make a significant return, having cost the investors nothing in real terms...."
Full articles is at http://www.unison.ie/irish_independent/stories.php3?ca=299&si=1501603&issue_id=13235
Ste