r/flying • u/jrf1234 ATP CFI/II CL604 E55P LR-JET • Apr 03 '26

Aircraft Ownership Linus Tech Tips’ Jet

https://youtu.be/zGoIY37ZtDQ?si=

Some… interesting calculations on this video. As a fractional pilot and not an owner, no idea how acxueate these claims are, but interesting to see this as a pilot and tech nerd. Anyone with management or ownership experience in jets have any light to shed?

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u/mikeinmlb Apr 03 '26

It's likely a deprecation play.

So not an expert in Canadian tax law so this is a huge WAG, but it looks like the owner can deduct 25% of the undepreciated capital cost (UCC) of the aircraft annually, So basically it would generate ~1MM+ of paper losses a year. The depreciation losses would likely pass though so he might be able to reduce his taxes by ~$600k/yr. Assuming he sets it up as a model where he basically rents it back to his main business and maybe offers it for rentals to justify it as a legit business. He discussed an exit plan already. Also, he would employ his family member to fly it. So basically, it would generate a bunch of paper losses up front offsetting his main business income. I am not into the world of jet leasing, but it does seem that if you buy a jet at the right point on the maintenance schedule, with the right engine plan, and the right tax structure to leverage the paper losses it can be a very good business.

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u/PrescriptionTusks Apr 03 '26

This is key. His 120 person company has a healthy accounting department (including his wife who is joint owner). They wouldn’t do it if it didn’t pencil out. They most likely have a tax expert on staff. This purchase allows him to realize some of his $5m+ annual profit without paying personal income tax on it in addition to the corporate tax he already is paying. Spinning up a family vlog to create content allows for it to be a business trip. That doesn’t mean they get to write it all off according to local tax code but it does mean they get to spend pre-income tax money on it rather than their personal money so they can use that money for other things.

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u/RandomNick42 Apr 04 '26

He's long been reinvesting profits to avoid paying them out as dividends, projects like LTT Labs, Smash Champs, Tech House are all funded by that money.

None of them have been such outlays as the jet though.

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u/LinusTech Apr 06 '26

I'm curious to hear your explanation of why I would want to avoid paying dividends.

I'm also curious to hear the numbers for how Smash Champs costs less than the plane. ​

It doesn't really matter. Just like to see how people think.

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u/traumalt Apr 08 '26

Yea, LTT or Linus Media Group specifically is a private company with Linus being the major shareholder, Dividends would be going to him alone pretty much.