NBAA Tax, Regulatory & Risk Management Conference

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Conference Agenda

Review the 2012 Tax Conference Attendee Brochure (1.1 MB, PDF)


Day One: Sunday, October 28, 2012

8:30 am – 8:45 am
Welcome and Introduction

Presented by Cliff Maine, Barnes & Thornburg, LLP, and Frank Polk, McAfee & Taft
8:45 am – 9:15 am
Background and Basics: FAA Operational and Regulatory Issues

Presented by Gary Garofalo, Garofalo Goerlich Hainbach PC
  • Review of key differences between Parts 91 and 135 of the Federal Aviation Regulations (FARs)
  • Overview of limited cost reimbursement options available under Part 91
  • Introduction to tax and regulatory issues that may arise from certain aircraft operating structures
9:15 am – 10:30 am
Background and Basics: Personal Use- Imputing Income and Deduction Limitations

Presented by Joanne Barbera, Barbera & Watkins, LLC
  • What is meant by “personal use” of an aircraft?
  • How does the IRS value aircraft personal use for fringe benefit purposes?
  • Status of the deductions disallowance rules including guidance and audit activity
  • Strategies for increasing aircraft related deductions in light of the disallowance rules
10:30 am – 11:00 am
Morning Break
11:00 am – 11:45 am
Background and Basics: Federal Excise Taxes

Presented by Mark Dennen, Solairus Aviation
  • How is Federal Excise Tax (FET) calculated for domestic and international charter flights?
  • Review of certain Part 91 cost reimbursable operations that may be subject to FET
  • Overview of potential FET applicability to aircraft management company arrangements
  • What is the IRS looking for in determining who is in possession, command and control of a flight?
11:45 am – 12:30 pm
Background and Basics: Ordinary and Necessary Use, Hobby Losses, Passive Losses, and At-Risk Rules

Presented by Alvaro Pascotto, Law Offices of Alvaro Pascotto and Jed Wolcott, Wolcott & Associates CPAs, P.A.
  • How does the IRS define ordinary and necessary use?
  • Why are hobby losses an issue for aircraft owners and how does the IRS determine hobby losses?
  • Who do passive loss rules apply to and how do owners use leasing exceptions and grouping elections?
  • What are at-risk rules and how can owners avoid concerns in this area?
12:30 pm – 1:45 pm
Lunch (Included in the registration fee.)
1:45 pm – 2:40 pm
Break Out Sessions

Option A: Understanding the IRS Final Regulations on Entertainment Use

Presented by John Hoover, Dow Lohnes PLLC and Ruth Wimer, McDermott, Will & Emery LLP
  • Review of the key differences between the proposed and final regulations
  • Discuss strategies taxpayers can implement to minimize their entertainment use disallowance
  • Review best practices to prepare for an IRS audit regarding entertainment use

Option B: Aircraft Insurance Issues, Policy Traps and Risk Management

Presented by Brint Smith, John F. Throne & Company and Christa Hinckley, SNR Denton
  • What lessons can be learned from recent aviation accidents and major insurance claims?
  • Review steps aircraft owners and operators can take to maximize the benefits of liability and hull insurance in the current market
  • How has the ongoing adoption of Safety Management Systems impacted the insurance market?
2:50 pm – 3:40 pm
Break Out Sessions

Option A: Advanced Loss Deductions: In-depth Look at Ordinary and Necessary Use, Hobby Losses, Passive Losses, and At-Risk Rules

Presented by Alvaro Pascotto, Law Offices of Alvaro Pascotto and Jed Wolcott, Wolcott & Associates CPA's, P.A.
  • Review of recent IRS tax court and audit cases in these areas
  • Strategies for qualifying aircraft use as ordinary and necessary
  • Considerations for avoiding hobby loss limitations
  • Advanced methods of avoiding passive activity restrictions

Option B: Advanced Personal Use: Aviation Reporting for Public Companies

Presented by Doug Stewart, AircraftLogs
  • Review the aviation reporting processes for a public company
  • Summarize the proxy reporting requirements for the SEC
  • Explain the linkages between proxy reporting and IRS requirements
  • Discuss practical solutions to common accounting challenges and other tips
3:40 pm – 4:10 pm
Afternoon Break
4:10 pm – 5:00 pm
Tax Depreciation Update

Presented by Glenn Hediger, Aviation Financial Consulting, LLC
  • An overview on requirements for and methods of tax depreciation
  • Bonus depreciation rules in effect for 2012
  • The effect on repairs and overhauls under the new IRS capitalization regulations

Day Two: Monday, October 29, 2012

8:15 am – 8:30 am
Review of Day One and Introduction to Day Two

Speakers: Cliff Maine, Barnes & Thornburg, LLP and Frank Polk, McAfee & Taft
8:30 am – 9:45 am
FAA/DOT Regulatory and Operational Issues

Presented by Eileen Gleimer, Crowell & Moring LLP and David Hernandez, Vedder Price PC
  • Overview of operations under parts 91 and 135, including the role of management companies and charter operators
  • Permissible charges and reimbursements under 91.501, including affiliated company operations, time sharing, interchange agreements and joint ownership
  • What is a flight department company and why should it be avoided?
  • Update on FAA policy changes regarding non-citizen trusts
9:45 am – 10:15 am
Morning Break
10:15 am – 11:30 am
State Tax Strategies and Resources

Presented by Phil Crowther, Jackson & Wade, L.L.C. and George Rice, Rice & Associates
  • Review of the various methods states use to tax ownership, operations and maintenance of business aircraft
  • Nexus and use tax issues to consider when making frequent visits to a state
  • State tax planning strategies to mitigate taxes when buying or selling an aircraft
  • Using the NBAA State Aviation Tax Report to stay current on tax policy
11:40 am – 12:30 pm
Breakout Sessions

Option A: International Operational and Tax Issues: Focus on the European Union including Value Added Taxes and the EU Emissions Trading Scheme

Moderator: Stewart H. Lapayowker, Esq., Stewart H. Lapayowker, P.A.

Panelists: Mark Byrne, Director, ICM Limited; Armando Cairoli, EU ETS Analyst, Eurocontrol; Aoife O’Sullivan, Gates and Partners; Lasse Rungholm, Chief Executive Officer, OPMAS; Graham Williamson, President, Aircraft Management and Charter Services, TAG Aviation Europe
  • EU-ETS: An update and information on Eurocontrol ETS resources for aircraft operator
  • EU Value Added Taxes: Impact on U.S. operators and information on potential solutions
  • Operational and Tax Considerations for U.S. Operators in Europe: EASA rule changes and their effects on U.S. operators and crew

Option B: Advanced Cost Sharing: Analysis of Options Under Part 91 and Review of FAA Opinions

Presented by David Norton, Shackelford Melton & McKinley and Stewart Pearl, Pearl Professional Corporation
  • Detailed discussion of recent FAA chief counsel interpretations and orders impacting business aviation operations
  • How do the FAA legal interpretations and other policy statements impact current business aircraft operating and ownership structures?
  • Scenario based discussion of common operating and ownership structures in light of recent tax and regulatory changes
12:30 pm – 1:45 pm
Lunch (Included in the registration fee.)
1:45 pm – 2:30 pm
Breakout Sessions

Option A: Advanced FET: Issues for Management Companies, Charter Operators and Brokers

Presented by John Hoover, Dow Lohnes PLLC
  • Explanation of the key IRS revenue rulings on FET applicability to management company arrangements
  • Analysis of the IRS Chief Counsel Advice (CCA) on management companies
  • Review of industry efforts to reverse the CCA and obtain clear guidance on FET applicability
  • Recommendations to minimize FET risk

Option B: Aircraft Financing: Loans, Leasing, and Tax & Regulatory Issues

Presented by Ed Kammerer, Hinckley, Allen & Snyder LLP and Jeff Wieand, Boston JetSearch, Inc.
  • General overview of the current aircraft finance climate
  • Review of key differences between loans and leases. Why choose one or the other?
  • Issues to consider in dealing with financial institutions
2:40 pm – 3:35 pm
The Aircraft Transaction: Buying and Selling Traps and Best Practices

Presented by Cliff Maine, Barnes & Thornburg LLP and Keith Swirsky, GKG Law, P.C.
  • Up to date and current strategies necessary to prepare for the purchase or sale of an aircraft in today's marketplace
  • Analysis of current trends in the aircraft market, including international transactions and aircraft title insurance
  • Checklist strategy for completing an aircraft transaction, including details from aircraft documentation to state and local tax compliance
3:45 pm – 5:00 pm

Join our speakers and members of the NBAA Tax Committee for refreshments and interactive roundtable discussions about the key tax, regulatory risk management issues discussed during the conference. Come prepared with questions or best practices you would like to share with peers at the various workshop tables.

Workshop Tables
  1. FAA /DOT regulatory and operational issues
  2. FET for management companies
  3. FET/DOT issues for charter brokering
  4. Hobby losses, passive activity, ordinary and necessary, and at risk rules
  5. Insurance and risk management
  6. International operations and taxes
  7. Personal use for non-public companies
  8. Personal use for public companies
  9. Recordkeeping in the flight department
  10. Tax, operational and organizational issues in an aircraft Acquisition

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