Because There Can Be More To The Good Life, A Higher Level, A More Abundant Life -
From Mere Wealth To Prosperity
Wealth preserving economic insights make living the best of the good life prudent wealth management
Can Flying Private Jets Make Economic & Environmental Sense?
YES Jets: Sensible Private Jet Travel: Personal, Practical, Prudent & Profitable
"There are two kinds of people in the world;
those that fly private & those who would if they could."
Bill Maher
YES Jets: A New Green Deal
Saves Time, Taxes, Money, Your Brand & Reputation - All While Saving The Planet
YES Yacht Executive Solutions now includes YES Jets as a complimentary luxury lifestyle service.
We don't sell planes, charter services, or manage planes. We just enhance the private jet experience.
Simply put, the unique advantage to private jet owners and private jet travelers is that YES Jets:
1) pays for it- whichever form, structure & provider of private jet travel that best serves each client,
2) protects from unwarranted IRS scrutiny by ensuring code compliance & economic substance, and
3) protects and preserves the hard earned value of a client's brand, reputation, assets & stock price from environmental extremists, social justice activists, ESG investors, and the cancel culture.
The real question is not - can private jet travel be profitable - but how profitable do you want to be?
Which leads to perhaps the most important question. How does the IRS view your "private travel activities"? Business, hobby, or excessive luxury lifestyle expense ?
YES Jets: The Private Jet Fix
Bill Maher is spot on talking about "fixing the environment", human nature, and flying private jets:
"Turns out, there is one thing in this world that is completely impossible to resist, and this is it. (Showing a picture of a private jet) It's like heroin. If you do it once, you'll never stop". There are two kinds of people in the world; those that fly private & those who would if they could."
Interest in business jets and private jet travel has recently reached an all time high. However human nature being what it is:
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everyone is doing it,
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my CPA, broker, said it was OK,
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if a little is good, more must be better,
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they / we have done it this way for years,
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is it really cheating if you don't get caught,
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it must be OK, because the IRS hasn't complained,
will certainly lead to abuses.
IT'S A WRITE OFF
And just as with illicit drugs, where market demand and sufficient financial wherewithal attracts suppliers, the private aviation industry is booming.
Unfortunately in the immediate rush to riches, some "providers" and "advisers" that are legitimately seeking to meet the desires of their clients may be overlooking the long term consequences.
Some undoubtedly seek to subsidize their jet ownership and private jet travel by claiming business tax deductions, when those tax deductions may not be legitimate or legal.
YES Jets is unique because it doesn't rely upon business deductions, or even charter flight income, to make private jet travel sensible.
YES Jets makes flying private economically and environmentally sensible for both business and personal use with no IRS risk or exposure.
When exploring of the complexities of, and options for, private jet travel, a good start is the work by Deloitte, the international tax and advisory firm, Private Aircraft Flying private makes sense for those with the right information, comparing the pros & cons of the five primary means of private jet travel:
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full jet ownership,
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fractional ownership,
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joint ownership,
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jet charter, and
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flight cards.
Largely ignoring cash flow, profitability, economics, or how to pay for a jet, its sound tax information & a worthwhile read for most.
In short, there are many ways to enjoy the benefits of private jet travel, each with its unique advantages and disadvantages, provided of course one can regularly and adequately document their compliance with all the rules and regulations.
Likewise, as is true for all industries, there is a plethora of professionals and advisors available to help you spend your money with some being better than others. But precious few that will actually pay for your private jet or luxury lifestyle travel.
Nevertheless, we can work with almost anyone: any professional and service provider, to customize the optimal program for each client. So it's important, with such flexibility, for you to choose wisely.
At the very least, you should expect private jet travel - for both business AND personal use - that's Net Worth Neutral, cash flow positive, and as profitable as practicable.
Thus for anyone that currently owns a private plane, travels on private planes or would like to fly privately if it made sense for them, YES Yacht Executive Solutions invites you to consider adding YES Jets- and the application of our lifestyle strategies- to get the best the good life has to offer.
Especially if you consider yourself one of the "working wealthy", our programs could make private travel - for both business and pleasure- more than just sensible- profitable.
Check Your Six
Starting with those that already own private planes for "business", take jet tax deductions, and anyone that just flies private; YES Jets could be the optimal wing man.
“Check your six” or “check-six” is a term that fighter pilots use to mean “look behind you” or “check your tail.” In this context, the “six” is the vulnerable position. It is in this position where the enemy could fire.
That threat is the more vigorous, focused, and well funded IRS coming after you from your blind spot.
What you thought was behind you- your prior tax deductions for business jets and luxury travel- more likely than not has left you vulnerable and exposed.
The IRS may be slow, but they're not stupid. Just because you have not been caught yet, or have been getting by with "things" for a long time, doesn't mean you're in the clear.
The Inflation Reduction Act authorized approximately 87,000 new IRS employees to close the annual tax gap by increased audits and compliance. A 2023 Treasury Department study revealed that every $1 spent auditing the wealthiest 10% of Americans yields a $12 increase in tax revenue, with the audits of the wealthiest being the most lucrative.
So with a 1200% ROI, where do you think the new IRS auditors will start?
YES has Your Economic Six
Those companies and individuals that fly privately - deducting the costs as "business" expenses and those jet charter 'businesses' that seldom if ever make a substantial net after tax profit above any tax benefits are likely to be high on the list.
Yes Jets has your back side and can help keep you off the IRS radar.
For example, only certain documented business expenses are tax deductible. Even then to be a deductible business expense, the expense must also be ordinary, necessary and reasonable.
But no expense is deductible if the activity is not a "business" whose primary purpose is a profit motive.
An activity that has not earned a substantial net profit 3 out of 5 years is deemed to be a hobby and not a business with a primary profit purpose. Thereby putting the burden on the taxpayer to prove a primary business motive to earn a net profit.
Jet owners can immediately protect themselves from heightened IRS scrutiny just by adding YES Jets.
Just adding YES Jets demonstrates to the IRS an actual profit motive behind jet ownership. And once private jet activities are cash flow positive & profitable, the IRS threat is effectively neutralized.
YES has Your Environmental Six
But even for those that may not be audited for their private jet and travel expenses, or that might be able to successfully defend an audit, most private jets use is still cash flow negative.
Does your private jet use break even or make a profit? If not, why not?
Or for public companies, how might private jet use effect the ESG score and stock price?
Today, for many, choosing to fly in private jets is increasingly becoming a values judgement, including how one values their time- and especially time spent with loved ones.
For regardless of one's wealth, everyone is time poor - but especially the wealthy. More wealth may provide more opportunities, but no more time in a day.
So how much is your time worth? How about the time spent with loved ones & your peace of mind?
Unfortunately, not everyone shares the same values. Especially when it comes to climate and environmental issues- jet owners and yacht owners - are in in the same boat- for their lifestyle choices.
Private jet travel and those that fly private are likely to be increasingly criticized and attacked by environmental extremists.
At least they must plan accordingly.
YES Jets has been specifically structured to mitigate any potential brand or reputational damage and provide peace of mind and ease the concerns of private jet ownership and travel.
YES Is Your Economic Solution To Private Jet Travel
So, how rich do you need to be to fly private? Well a lot may depend on just how smart you are.
the "sea - crets" of smart money
Save up to 50% to charter the world’s most luxurious yachts and jets - just as some of the wealthiest have done for decades.
Smarter Charter enables select YES clients to charter yachts and jets at much lower net costs than they could likely negotiate otherwise.
Expected net savings when chartering a yachts and jets should range from at least 20% to 50% and possibly even more- depending on the client and the yacht or jet.
Sort of like the difference between wholesale and retail pricing or when you receive a rebate.
Smarter Charter enhances the value of traditional charter and expands the charter market to include those that might not otherwise consider yacht and jet charter as a viable recreational option.
It also enables the experienced charterer to significantly upscale their next charter.
Smart People Make A Lot Of Not So Smart Decisions
The success secret of the super rich to $ensible private jet travel is- stop overpaying your taxes.
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Do you think private jet travel would be more affordable if your effective tax rate is less than 5% and you invested the savings?
The United States General Accounting Office (GAO) estimates 60% - 90% of all tax returns prepared by tax professionals contain errors.
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In 2019, the GAO told Congress the tax code complexity results in both under-payment & over-payment of taxes. A GAO study of paid tax professionals (CPAs) revealed:
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only ten percent (10%) prepare tax returns correctly, per tax law & error free,
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thirty-seven percent (37%) "made errors with substantial tax consequences".​
Of course that's better than prior studies where not one CPA was correct and the range of tax liabilities between the highest and lowest was 100% or twice as much.
Congress estimates over half of all taxpayers overpay their taxes by not taking advantage of available tax provisions.
It's worse for high income earners.
The latest available data from the IRS reports that for those earning over $400,000, less than ¼ of 1% take full advantage of all available deductions and tax code provisions.
For example, as of September 2022, the IRS’ W-4 Tax Withholding Estimator on their website, confirms an employee earning $1,000,000 of ordinary W-2 income, can with proper planning, only owe about $25,000.
That’s a 2.5% tax rate.
Those earning less than $1,000,000 could owe even less – if anything.
The IRS also confirms even someone earning $25,000,000 in ordinary W-2 income, a professional athlete or corporate executive for example, can with the proper planning owe as little as $1.1 million.
That’s a tax rate of only about 4.5%.
That’s a single year tax saving of about $8,000,000.
Such real world examples of multiple years of similar tax savings and compounding investments confirms recent research & secret of the super-rich: taxes have 10 times greater influence over long term wealth accumulation than actual asset allocations or investments.
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That if your current advisors knew, surely they'd have told you already- wouldn't they?