NBAA Business Aviation Taxes Seminar

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Seminar Agenda

All events will be held at the Hilton San Francisco Financial District, 750 Kearny St, San Francisco, CA 94108 (800) 424-8292 or (415) 433-6600.

Friday, May 2, 2014

7:30 a.m. – 8:00 a.m.
Registration and Continental Breakfast
8:00 a.m. – 8:30 a.m.
Welcome and Introduction of Key Terms

Presented by: Glenn Hediger, Aviation Financial Consulting, LLC and Scott O’Brien, NBAA

8:30 a.m. – 9:00 a.m.
FAA Regulatory Review: Implications for Tax Planning

Presented by: Kevin Austin, Aero Law Group

  • Understand how the various restrictions and exceptions under Parts 91 and 135 of the Federal Aviation Regulations (FARs) affect aircraft operations.
  • Learn about options for receiving limited reimbursement for FAR Part 91 flight operations and potential tax consequences.
  • Examine the “flight department company trap” and solutions for structuring flight operations to fully comply with FAR Part 91.
9:00 a.m. – 9:45 a.m.
State Tax Planning Opportunities With a California Focus

Presented by: George Rice, Rice & Associates

  • Minimize California sales/use tax by learning about exemptions such as the common carrier and interstate commerce exemptions.
  • Distinguish between common exemptions and the specific requirements to succeed in achieving the California exemption.
  • Examine the relevance of property taxes on aircraft ownership, including specific California property tax apportionment issues.
9:45 a.m. – 10:15 a.m.
Evolving State Tax Issues for Aircraft Owners and Operators

Presented by: Jordan Miller, CenterPoint Aviation Law

  • Learn about the latest state tax developments regarding aircraft and analyze other western state tax “hot topics”.
  • Prepare for possible scrutiny of aircraft leasing structures by state taxing authorities.
  • Utilize challenges in Washington State such as the “Tax Avoidance” rule as a case study for responding to evolving state tax issues.
10:15 a.m. – 10:45 a.m.
Morning Break
10:45 a.m. – 12:15 p.m.
Federal Audit Traps and Solutions for Aircraft Leasing Structures

Presented by: John Hoover, Cooley LLP and Keith Swirsky, GKG Law

  • Develop strategies for arguing that business aircraft are “ordinary and necessary” expenses under IRC section 162.
  • Recognize the “leasing company trap” under Internal Revenue Code (IRC) section 280F and how it can limit depreciation deductions.
  • Review strategies such as grouping to deal with passive loss limitations under IRC Section 469 and hobby loss limitations under IRC section 183.
12:15 pm – 1:30 p.m.
Lunch and Sponsor Tables
1:30 p.m. – 2:15 p.m.
Aircraft Reporting Best Practices for Public Companies

Presented by: Stewart Lapayowker, Stewart H. Lapayowker, P.A. and Alvaro Pascotto, Law Offices of Alvaro Pascotto

  • Distinguish SEC requirements for public companies to report aggregate incremental cost of aircraft usage from differing IRS requirements.
  • Review specific examples of public company proxy statements to develop best practices for reporting.
  • Learn how use of time sharing agreements and the FAA’s Nichols interpretation to seek reimbursement for certain flights.
2:15 p.m. – 3:00 p.m.
Federal Excise Taxes: Implications Beyond Commercial Operations

Presented by: Mark Dennen , Solairus Aviation

  • Analyze how federal excise taxes (FET) can have an impact on many Part 91 structures involving compensation or reimbursement.
  • Examine potential FET implications for ownership structures involving a single member LLC.
  • Learn about the latest FET issues for aircraft management service providers and strategies to respond to possible IRS audits.
3:00 p.m. – 3:30 p.m.
Afternoon Break
3:30 p.m. – 4:15 p.m.
Best Practices for Managing Non-Business Use of Aircraft

Presented by: Jed Wolcott, Wolcott & Associates, PA

  • Utilize the standard industry fare level rules to calculate imputed income for complex trips including multiple legs and international operations.
  • Understand the final IRS entertainment use regulations and new planning opportunities they may present.
  • Examine common questions regarding entertainment use such as calculation methods for deadhead flights.
4:15 p.m. – 5:15 p.m.
Case Study: Gray Areas of Business Aircraft Usage

Presented by: Doug Stewart , AircraftLogs (Moderator) and Joanne Barbera, Barbera & Watkins and Rick Farley, PricewaterhouseCoopers LLP

  • Review actual scenarios involving flights that often fall into the “gray area” between business and non-business use.
  • Work through each scenario to understand how arrangements such as time sharing agreements and leases affect non-business use calculations.
  • Develop best practices for consistently documenting and managing tax implications for complex multi-purpose flights.
5:15 p.m. – 5:30 p.m.
Closing Remarks

Conference Sponsors

Platinum

  Aircraft Logs   Husch Blackwell  

Stewart H. Lapayowker, P.A.

Gold

  GKG Law   Vedder Price  

Wolcott and Associates

Silver

  Aero Law Group   Barnes and Thornburg  

  TVPX

Silver

  Barbera and Watkins   Cutter-Aviation  

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