Poor management of non-commercial use can have significant tax consequences, including the absence of deductions. Here too, an aeronautical CPA or lawyer is the key to helping you avoid the legal and tax pitfalls of buying and owning an airplane. In case of delay of the buyer or seller, or even if one of them is invoked in the context of the contract of sale, a letter of credence is sent to the fiduciary agent requesting the release of the count. The trust agent almost always requires an agreement between the buyer and seller on the disposition of the down payment before releasing funds. Indeed, it does not matter whether the deposit is currently considered refundable or not, in accordance with the terms of the sales contract. Agent Escrow does not want to be able to interpret the sales contract. Therefore, in the event of a dispute or if the sales contract is ambiguous in one way or another, no funds are released until both parties consent to it. Until the parties accept and send a confirmation of this agreement to the trust agent, it is unlikely that the agent will release the deposit. In order to avoid any dispute regarding the deposit, the buyer and the seller must conclude a sales contract containing a precise language on the treatment of the deposit. The fiduciary agent should recognize the contract of sale by signing the contract of sale, so that it is clear that buyers, sellers and fiduciary agents know and understand the terms of the acomptition. Alternatively, buyers, sellers and fiduciary agents may enter into a separate contract from the contract of sale such as a trust agreement. The trust agreement must use specific language with respect to the processing of the deposit….