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NBAA Offers Extensive Year-Round Tax Resources to Member Companies
Tax season is right around the corner, but all year long NBAA helps Member Companies abide by notoriously confusing tax rules. As a Member benefit, the Association offers extensive web resources, several tax-related events throughout the year and now even more On-Demand Education options than ever before. NBAA’s Tax Committee, a team of industry experts, has its fingers on the pulse of the industry and is working for Members in every sector.
“While most people generally do not enjoy dealing with tax issues, taxes affect all aspects of aircraft ownership and operations,” said NBAA’s Mike Nichols, vice president, operations, education & economics. It is essential that aircraft owners and operators become familiar with a host of issues, such as: purchasing an aircraft (sales/use tax issues), basing an aircraft (property taxes and registration fees), hiring pilots (employment tax), aircraft ownership (tax depreciation and substantiating use as an ordinary and reasonable business expense), aircraft operation (fuel taxes, fringe benefit valuation for any personal use, independent contractors and federal excise tax on wet lease arrangements) and selling an aircraft (sales tax issues).
NBAA’s online tax, finance and insurance resources, located at www.nbaa.org/taxes, provide a one-stop shop for NBAA Members to learn about and research business aviation tax issues, including federal, state, foreign and employment tax issues. The web site provides written resources, articles, charts, tables and checklists. Tax Committee Chair Joanne Barbera notes that, “The SIFL Calculator, in particular, is highly regarded by Members when determining the fringe benefit value for a non-business passenger on a flight, and an aircraft transactions checklist illustrating what is involved in purchasing and selling an aircraft recently has been made available as well.” There also are links to additional information on nearly every segment of the business aviation tax arena.
Tax issues can be daunting, particularly for flight department personnel and aircraft owners, and while NBAA offers its Members extensive resources, it is critical that aircraft owners and flight department managers work closely with a tax advisor experienced in aviation matters; problems or confusion can occur as a result of using internal accounting or finance staff as opposed to a tax advisor experienced in aviation matters. The Products and Services section of the Association’s web site at www.nbaa.org/prodsvcs helps Member Companies find outside resources for accounting and tax, management, consulting and legal services.
NBAA also is increasing its On-Demand Education offerings, with courses available online, as pay-per-view products or via video CD-ROM. The entirety of last year’s 16th Annual Tax, Regulatory & Risk Management Conference (shown at left) recently was made available to Members, and an independent contractor panel discussion excerpted from the 2006 Conference can be purchased online, with additional selections on the way.
The NBAA Tax, Regulatory & Risk Management Conference provides an introductory to intermediate examination of business aviation tax, regulatory and financial risk management topics. Held annually in conjunction with NBAA’s Annual Meeting & Convention, it is one of the Association’s most well attended events. “It’s the best two-day primer out there,” says NBAA Tax Committee Vice Chairman Ed Kammerer. “It’s always fresh and current; every year it gets you the core info.”
Other smaller forums are held throughout the year, in conjunction with the Tax Committee, such as NBAA’s Regulatory & Operational Hot Topics Forum being held in February in Fort Lauderdale, FL. This year’s forum will include a panel on employment issues and an operational control update. This summer in New York, a one-day Business Aviation Taxes Forum will provide an intermediate to advanced examination of federal and state aviation taxation matters. The Association also will host five Business Aviation Regional Forums, which will include industry experts discussing local tax and regulatory issues and initiatives.
In addition, the NBAA Tax Committee continually works to educate Members through seminars and web site articles, advise NBAA on regulatory matters pending before the Internal Revenue Service and Department of Treasury, and assist with developing written comments to rulemaking from these agencies. It also partners with NBAA regional representatives to share knowledge about state and local aviation tax matters, including legislative initiatives of various states. In the future, the Committee hopes to recruit additional members knowledgeable in business aviation accounting and budgeting to expand information available to NBAA Members in those areas.
NBAA’s Vice President, Membership Connie Penne adds, “NBAA’s tax resources and educational events are just some of the many benefits NBAA provides its Members yearround to help your business succeed.”