What are the principal differences between chartering and fractional programs?

There are many. To summarize them briefly, in fractional the buyer owns an asset on its books which qualifies for depreciation and other tax benefits, and which may have value at the end of the (typically, 5 year) program agreements. When chartering, the chartering party only has a business expense deduction (if eligible), and a canceled check or credit card charge at the end of the flight.

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