NBAA Business Aviation Taxes Seminar

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Seminar Agenda

All events will be held at the Marriott Metro Center, Washington, DC, 775 12th Street, NW, Washington, DC 20005 (800) 228-9290 or (202) 737-2200.

Friday, May 3, 2013

8:00 a.m. – 8:05 a.m.
Welcome and Introduction

Presented by: Cliff Maine, Barnes & Thornburg, LLP and Sean Fitzgibbons, Wal-Mart Corporation

8:05 a.m. – 8:45 a.m.
The Critical Few: 91 vs. 135, Leases, and the “Flight Department Company”

Presented by: Gary Garofalo, Garofalo Goerlich Hainbach PC and Jeff Wieand, Boston Jet Search

  • Review of key differences between Parts 91 and 135 of the FARs.
  • When is it permissible to receive reimbursement for flights conducted under Part 91?
  • What is the “flight department company trap” and why does it pose problems under Part 91?
  • What are the differences between a “wet” and “dry” lease?
8:45 a.m. – 10:00 a.m.
Maximizing Business Deductions while Avoiding Trouble

Presented by: Keith Swirsky, GKG Law, P.C.

  • Distinguish between trade or business expenses, expenses for the production of income, and hobby expenses, and learn when is each deductible.
  • When are aircraft expenses considered non-deductible entertainment, recreation or amusement expenses?
  • What is the "Leasing Company Trap" and how can you avoid falling into it?
  • What are the "Passive Loss" and "At Risk" rules, and when are they relevant?
10:00 a.m. – 10:30 a.m.
Morning Break
10:30 a.m. – 11:30 a.m.
State Tax Considerations for Structuring Aircraft Ownership and Operation

Presented by: Michael Cosby, Husch Blackwell LLP and Phil Crowther, Jackson & Wade, L.L.C.

  • Learn about common state sales and use tax exemptions applicable to aircraft and how to utilize the NBAA State Aviation Tax Report.
  • What are state tax limitations on application of use tax to aircraft not “purchased for use” in the state?
  • Review federal constitutional limitations on taxation of non-resident aircraft.
  • What is the impact of recent attacks by state taxation authorities on leasing companies?
11:30 a.m. – 12:00 p.m.
Planning Your Approach: Balancing Tax Goals with FAA Regulations

Presented by: Joanne Barbera, Barbera & Watkins, LLC

  • Spot problems and create solutions for single purpose entity structures.
  • Identify advantages and avoid pitfalls of aircraft leasing structures.
  • Explore aircraft management company arrangements.
12:00 noon – 1:15 p.m.
Lunch is included in the Registration fee.
1:15 p.m. – 2:15 p.m.
Compliance Strategies: Personal and Entertainment Use Flights

Presented by: Jed Wolcott, Wolcott & Associates

  • What has changed now that IRS has issued final regulations on the entertainment use cost disallowance?
  • Learn how to use the seat-mile, seat hour, and flight-by-flight reporting rules to comply with reporting requirements for non-business flights.
  • Develop planning strategies to minimize the tax consequence of the final entertainment use regulations.
  • Review IRS documentation standards and learn how to maintain required information in case of an audit.
2:15 p.m. – 3:00 p.m.
An Emerging Tax: The European Union Emissions Trading Scheme

Presented by: Martina Becher, TAG Aviation

  • How does the European Union “stop the clock” announcement and EU ETS prohibition act impact compliance responsibilities for operators?
  • What does the process of trading actual emissions credits look like?
  • Are there estimates on what the EU ETS will actually cost flight departments?
  • Is progress being made at ICAO to develop a global plan to curb greenhouse gas emissions?
3:00 p.m. – 3:30 p.m.
Afternoon Break
3:30 p.m. – 4:10 p.m.
Bonus Depreciation: Potential Opportunities in 2013 and 2014?

Presented by: Rick Farley, PricewaterhouseCoopers

  • Details on potential bonus depreciation opportunities in 2013 and 2014.
  • Review general requirements for bonus depreciation.
  • Learn about recent IRS tax court and audit cases in the area of bonus depreciation.
  • Review 50% and 100% bonus depreciation opportunities for 2013 and 2014.
4:10 p.m. – 5:20 p.m.
Understanding Federal Excise Tax Exposure for Management Companies

Presented by: Eileen Gleimer, Crowell & Moring and John Hoover, Dow Lohnes

  • Explanation of potential FET liabilities arising from the use of aircraft management companies.
  • Potential structuring arrangements to minimize possible excise tax risk.
  • Update on IRS excise tax audits after Chief Counsel Advice 2012-10026.
  • Status of NBAA efforts to protest the Chief Counsel Advice and seek improved guidance from IRS.
5:20 p.m. – 5:30 p.m.
Closing Remarks

Conference Sponsors:


Husch Blackwell LLP Stewart H. Lapayowker, P.A.



GKG Law, P.C.TVPX 1031 Exchange


Barnes & ThornburgAviation Financial Consulting

Wolcott & Associates, P.A.


GWBAAHarper Meyer

Additional sponsorship opportunities are available. Please contact NBAA via to learn how you can become an important sponsor of the 2013 NBAA Business Aviation Taxes Seminar.

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