Whenever the government has arrested criminals and federal law breakers they seize their property and other assets. If the law breaker has used any of the money generated illegally to fund their business or to provide further comfort to their homes, these items are eligible for the government to seize. Many agencies like the DEA, IRS, FBI, US customs, municipal government along with city government, are responsible for their own auctions. These auctions are can be held at different hours and days depending on the government agency.
Large sizes of items such as trucks, cars, ATV’s and even aircrafts take up a huge amount of storage which ends up costing the government money. In order for them to get rid of these huge items, they sell them at extremely competitive prices that you can probably find no where else on the market. Aircrafts can be bid on at a starting price as low as 100 dollars.
Typically aircrafts that have been seized are due to either tax invasion from corporations or import taxes that have not been paid. When you look into the market to buy such an aircraft it can cost well into the $100,000 mark, so this can be a huge break if you are able to own a plane for less than $10,000.
When you are considering to buy an aircraft, it greatly depends on the reasons as to why you want to acquire one. Certain aircraft models at these auctions are simply not useful to someone who has specific needs, so it is important to do your research before investing in an aircraft. If you are looking to buy a corporate airplane, then you should most definitively figure out how many people will be using this aircraft. If it is for corporate purposes, then it is necessary to know if this plane will be used for small trips from state to state or will it be used for international flying. It is this reason that buying any seized property auctions aircraft is not always a good idea. It is also highly recommended that you take along your chief pilot so he can help determined the correct aircraft you need for your corporate business.
If you are simply buying an aircraft for private needs, then again you should figure out if you will be flying locally or internationally. Buying an overly large aircraft simply might be a waste of your money and you will not utilize it to its fullest capabilities. Remember that the bigger the aircraft is, the more fuel it will need, so it is extremely important for a private owner to be getting as much value from the aircraft as possible.
Before you buy an aircraft, it is important to get a special aviation tax attorney to help you through the legal process of buying an aircraft. Different states have different laws on purchasing an aircraft and it can certainly save you a lot of grief if you hire a professional to help you through.
