A sale can change possession without erasing the seller assessment for that year. Clarify the county obligation and contractual allocation before agreeing on net proceeds.
Identify the lien-date owner
Contra Costa County explains that an aircraft sold after January 1 remains assessed to the seller for that assessment year. Buyers and sellers should verify the applicable county facts and records. Do not assume changing FAA ownership automatically reallocates the county bill or that the person receiving the invoice is the party ultimately intended to bear every cost under the purchase agreement.
Separate legal obligation from settlement allocation
A purchase contract may allocate costs between the parties, but a private adjustment does not necessarily change whom the county assesses. Ask escrow and counsel to document any agreed credit or proration, the assumptions used and the treatment of a later bill. If the amount is estimated, specify who handles the reconciliation. A vague promise to split taxes later can lead to disagreement after the aircraft and funds have moved.
Check notices and outstanding amounts
Obtain current aircraft account information, known assessments, unpaid bills and relevant notices. The title professional should assess any lien questions with the other closing records; FAA registration alone is not a complete tax clearance. Give the assessor the sale information it requests and retain evidence that the update was made. Keep the aircraft serial number, buyer identity and date consistent across county and escrow submissions.
Show proceeds before unmodeled taxes
The seller-net-proceeds calculator should display loan payoff, commissions, closing expenses and agreed adjustments separately. Explain which property-tax amounts are included and which income-tax consequences remain outside the result. Paying off debt is not the same as eliminating taxable gain or depreciation recapture. A closing estimate can be useful without implying it is a final tax return or a guarantee of after-tax cash.
A practical planning exercise
Illustrative settlement: a seller closes in June and expects a later annual property-tax bill. State the agreed credit and reconciliation procedure in the closing documents. Keep the county-assessed party distinct from the economic split agreed by buyer and seller.
Your next-step checklist
- Verify January1 ownership.
- Agree written allocation.
- Check assessments and notices.
- Retain ownership-update proof.
Sources & further reading
Primary sources support the relevant facts. Our planning questions and illustrative exercises are editorial analysis; they do not replace transaction-specific advice.
- Boats and Aircraft · accessed 2026-10-28
- Clear Title · accessed 2026-10-28