NBAA Tax, Regulatory & Risk Management Conference

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Conference Agenda

Review the 2013 Tax Conference Attendee Brochure (2.4 MB, PDF)

Day One: Sunday, October 20, 2013

The Tax Conference will take place in Room N250 of the Las Vegas Convention Center

8:00 a.m. – 8:30 a.m.
Registration & Continental Breakfast
8:30 a.m. – 8:40 a.m.
Welcome and Introduction
8:40 a.m. – 9:30 a.m.
What is Permissible under the FARs? Evaluating Aircraft Ownership and Operating Structures

Frank Polk, McAfee & Taft; Jeff Wieand, Boston Jet Search
  • Discuss the interplay and conflict between Federal Aviation Regulations (FARs) and ownership/operating structures created for tax planning
  • Analyze several common aircraft ownership structures in light of FAA and IRS considerations and review the differences between Part 91 and Part 135
  • The flight department company: Why it is popular and why it does not work
  • Learn how a management company may or may not save the day
9:30 a.m. – 10:30 a.m.
When are Aircraft Ownership and Operating Costs Deductible?

Joanne Barbera, Barbera & Watkins; Jeff Towers, TVPX 1031 Exchange Co.
  • Review deductions in the context of acquiring an aircraft and structuring the ownership and operation while learning which ownership/operating costs are deductible
  • Discuss the importance of ordinary and necessary expense requirement in selecting an ownership structure and introduce other limitations (e.g., hobby loss, passive activity, at-risk rules)
  • Explain the concept of tax basis and discuss depreciation schedules and requirements for each schedule
  • Discuss the impact of depreciation recapture and the rules for using bonus depreciation and like-kind exchanges
10:30 a.m. – 11:00 a.m.
Morning Break
11:00 a.m. – 12:00 p.m.
Strategies for Tracking and Reporting Non-Business Use of Aircraft

Doug Stewart, AircraftLogs; Keith Swirsky, GKG Law, P.C.
  • Understand how the IRS values non-business use of aircraft for fringe benefit purposes and how to properly report the usage
  • How do the entertainment use disallowance rules fit in with valuation of fringe benefits?
  • Review how to use tools such as timeshare agreements that allow reimbursement to the company for non-business use
  • Learn about strategies and best practices for tracking non-business use
12:00 p.m. – 12:30 p.m.
Fundamentals of Federal Excise Taxes for Part 91 and 135 Operators

Jed Wolcott, Wolcott & Associates CPAs, P.A.
  • Review the key elements needed to correctly calculate and report federal air transportation excise tax (FET), including tax applicability and current rates
  • Learn about the “possession, command and control” test and how it can result in certain Part 91 flights being subject to FET
  • Discuss common flight scenarios to understand FET applicability for domestic and international trips
12:30 p.m. – 1:45 p.m.
Lunch (Included in Registration Fee)
1:45 p.m. – 2:30 p.m.
Breakout Sessions

Option A: FET Session: Management Company Focus

George Rice, Rice & Associates, Inc.; Nel Stubbs, Conklin & De Decker Associates
  • Learn about the status of FET audits of aircraft management companies, including the latest news from the IRS and Treasury Department
  • Understand how auditors are applying IRS published guidance when conducting audits and what is happening at the appeals level
  • Discuss strategies for structuring management arrangements to reduce audit risk


Option B: Best Practices for Aviation Reporting at Public Companies

Alan Goldstein, Citigroup, Inc.
  • Review Securities and Exchange Commission (SEC) reporting requirements related to business aircraft use at public companies
  • Develop best practices for reporting based on a review of public company proxy statements
  • Discuss emerging issues and recent cases dealing with aviation-related SEC disclosures
2:40 p.m. – 3:40 p.m.
Breakout Sessions

Option A: The Aircraft Acquisition: Keys to Success

Jeff Agur, The Van Allen Group; Cliff Maine, Barnes & Thornburg LLP
  • Obtain strategies for developing an aircraft acquisition plan including evaluation of usage options such as charter, in-house flight department, management, or fractional
  • What are the most effective strategies for evaluating true aircraft ownership costs?
  • Discuss key elements of the aircraft acquisition process, including the letter of intent, purchase agreement, pre-buy and closing


Option B: Final Entertainment Use Regulations- Understanding Key Changes

Ruth Wimer, McDermott, Will & Emery LLP
  • Review important changes in the final regulations, including the straight line depreciation election and deadhead flight calculations
  • Learn about strategies to reduce the entertainment use disallowance
  • Discuss how companies can bring together fringe benefit valuation, entertainment use issues and SEC reporting when developing a compliance plan
3:40 p.m. – 4:10 p.m.
Afternoon Break
4:10 p.m. – 5:30 p.m.
Preparing for and Handling IRS Audits of Aircraft Owners and Users

Phil Crowther, Jackson & Wade, L.L.C.; Gary Horowitz, Wiley Rein LLP
  • The Road Ahead: Brief overview of the IRS tax audit and appeals process, including taxpayer rights and obligations
  • The Dangers Ahead: Key IRS audit risk areas for business aircraft owners/users and techniques to reduce those risks
  • Planning Ahead: Strategies to prepare for an IRS audit, and maintaining adequate documentation
  • Into The Breach: Applying lessons learned from actual IRS audits

Day Two: Monday, October 21, 2013

7:45 a.m. – 8:15 a.m.
Continental Breakfast
8:15 a.m. – 8:30 a.m.
Welcome and Introduction
8:30 a.m. – 9:30 a.m.
Aircraft Management Arrangements: Pros and Cons

Michael Cosby, Husch Blackwell LLP; Dave Weil, Flight Dept Solutions
  • Review the advantages and disadvantages of aircraft management vs. in-house flight departments
  • Learn about how and when to select an aircraft management company, including best practices for reviewing management contracts
  • What questions should aircraft owners ask of management companies?
  • What is the relationship of FARs to management arrangements: Which entity has operational control and how does charter fit in?
9:30 a.m. – 10:30 a.m.
Aircraft Leasing Structures: Traps and Benefits

John Hoover, Dow Lohnes PLLC
  • What are the tax benefits and tax risks of leasing structures and how can owners mitigate risks?
  • Learn about benefits of using a single member LLC subsidiary as the lessor
  • Review passive loss rules relating to leasing, including grouping elections, re-characterization rules and certain prohibitions on grouping
  • Discuss impacts of the potential 3.8% Medicare tax on leasing not in the ordinary course of business
10:30 a.m. – 11:00 a.m.
Morning Break
11:00 a.m. – 12:00 p.m.
Aviation Insurance: The Aircraft Operator’s Perspective

Brint Smith, John F. Throne & Company (Moderator); Victor D’Avanzo, USAIG; James Murray, Delta Private Jets
  • Understand the insurance buying process from the perspective of the buyer
  • Learn about how to manage insurance claim scenarios and discuss actual claims scenarios
  • What can the aircraft operator do to make the most of the broker/customer relationship?
12:00 p.m. – 1:30 p.m.
Lunch (Included in Registration Fee)
1:30 p.m. – 2:30 p.m.
Breakout Sessions

Option A: State Taxes: Minimizing Liabilities in Multiple States

Vicky Boladian, Aerlex Law Group
  • Review emerging state tax issues such as additional scrutiny by states on leasing structures; property tax audits, and tax treatment of fractional shares
  • Discuss how to bring state tax planning into the aircraft acquisition process
  • Learn how to make the most of the NBAA State Aviation Tax Report


Option B: Managing International Tax and Regulatory Issues

Moderated by Stewart Lapayowker, Stewart H. Lapayowker, P.A

Panelists: Mark Byrne, ICM Group; Armando Cairoli, Eurocontrol; Angie Deady-Fiddler, Martyn Fiddler Associates; James Meyer, Harper Meyer; Lasse Rungholm, OPMAS, Rick Snider, Rockwell Collins
  • What is the latest on EU ETS and how does the “stop the clock” announcement impact business aviation?
  • Learn about how to plan for and comply with new and emerging taxes in the EU that will affect business aircraft operators
  • Review how operators are managing the EU aircraft importation (VAT) process
 
2:40 pm – 3:40 pm
Breakout Sessions

Option A: Part 91 Cost Sharing

Gary Garofalo, Garofalo Goerlich Hainbach PC; David Hernandez, Vedder Price
  • What are the options under FARs for an executive to pay for flights on a company aircraft?
  • When must FET be charged on FAR 91.501 flights?
  • How to avoid traps for the unwary in reimbursing flights costs


Option B: International Aircraft Transactions

James Meyer, Harper Meyer; Alvaro Pascotto, Law Offices of Alvaro Pascotto
  • Learn about key issues of international transactions, including title, escrow, payments and transfer of funds, taxes and customs
  • Review strategies for selecting local counsel when conducting foreign transactions
  • Discuss key elements of aircraft import transactions
  • Learn why other aircraft registries are considered and keys to the evaluation process
3:40 p.m. – 4:10 p.m.
Afternoon Break
4:10 p.m. – 5:00 p.m.
Case Studies: Aircraft Ownership & Cost Allocation

Doug Stewart, AircraftLogs (Moderator); Eileen Gleimer, Crowell & Moring; Ed Kammerer, Hinckley, Allen & Snyder LLP
  • Review common economic or operational goals, and the ownership and allocation structures which achieve them
  • Understand the planning and compliance reasons for selecting various ownership and operating structures
  • Discuss the tradeoffs required by certain structures, and the accounting and recordkeeping requirements to sustain them
  • Identify changes that may render a structure obsolete or inadequate, or non-compliant

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