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


  Aircraft Logs   Husch Blackwell  

Stewart H. Lapayowker, P.A.


  GKG Law   Vedder Price  

Wolcott and Associates


  Aero Law Group   Barnes and Thornburg  



  Barbera and Watkins   Cutter-Aviation  


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