Gross sale price is not the cash available to the seller. Deduct the actual payoff and transaction costs, identify holdbacks and adjustments, and keep tax analysis distinct from the simple proceeds worksheet.
Use a dated gross-to-net schedule
Start with agreed price and identify any separate credits, adjustments or deposits. A buyer deposit generally contributes toward the total price under the contract; do not add it again as extra sale revenue. Use the final closing statement as the source for actual disbursements and label preliminary amounts as estimates.
Obtain the actual payoff
Request payoff through the intended closing date, including contractual interest, charges and release conditions. A periodic statement balance may be insufficient. Refresh the quote if closing moves. Where more than one interest must be resolved, have the title and legal advisers identify each required payment or release rather than assuming one loan is the whole picture.
Separate expenses and retained amounts
List brokerage, legal, escrow, inspection obligations, repair allocations, transfer fees and other agreed seller costs. Show escrow holdbacks separately from expenses if the amount might later return to the seller. Do not treat withheld cash as definitely spent or immediately available. Use the actual agreements to determine its eventual treatment.
Keep taxes and replacement purchases distinct
The simple tool can show estimated proceeds before unmodeled income taxes. Have the tax adviser assess applicable reporting and tax consequences using basis, use and transaction facts. If proceeds fund another aircraft, show timing and replacement cash needs separately. Neither the gross price nor a preliminary net estimate guarantees money available for the next deposit.
Illustrative seller scenario
Illustrative only: price is $5 million, dated payoff $2 million, selling costs $150,000 and an agreed $100,000 holdback. Immediate modeled proceeds are $2.75 million before unmodeled taxes; the holdback is a separate potential future release. If a deposit is already part of the $5 million price, adding it again would overstate proceeds.
Your next-step checklist
- Dated price-to-proceeds schedule
- Payoff confirmation
- Costs versus holdbacks
- Separate tax and replacement plan
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.
- FAA original clear-title guidance · accessed 2026-10-28