NBAA TAX, REGULATORY & RISK MANAGEMENT CONFERENCE

Transcription

1 DEDICATED TO HELPING BUSINESS ACHIEVE ITS HIGHEST GOALS. NBAA TAX, REGULATORY & RISK MANAGEMENT CONFERENCE OCTOBER 20-21, 2013 LAS VEGAS, NV REGISTRATION IS NOW OPEN!

2 TAX AND REGULATORY PLANNING: Achieve Compliance and Maximize Aircraft Value CONFERENCE DESCRIPTION Plan to attend the NBAA Tax, Regulatory & Risk Management Conference on October at the Las Vegas Convention Center in Las Vegas, NV, where business aviation professionals will learn the latest strategies for complying with key tax, legal and regulatory issues. This event will be held in conjunction with the NBAA Business Aviation Convention & Exhibition (NBAA2013). If you are new to business aviation tax and regulatory issues or are looking to build on existing knowledge, this conference brings together recognized industry experts to review key building blocks and provide in-depth coverage of emerging topics. Breakout sessions throughout the two days allow attendees to customize their learning experience. This year, the conference will provide tools to succeed in structuring the ownership and operation of a business aircraft to maximize deductions while managing critical FAA, IRS and state tax issues. Attendees will also learn how to prepare for challenges, such as IRS audits and complying with regulatory, tax and securities issues arising from personal use of a business asset. Finally, case studies will review common economic and operational goals to help identify the optimal aircraft ownership and usage strategy. JOIN your peers to share best practices, learn from industry experts and develop a strategy that maximizes the value of a business aircraft while achieving compliance. WHO SHOULD ATTEND From flight department personnel looking to understand the core tax and regulatory issues to experienced business aviation advisors planning to build relationships and stay current on the latest issues, this is a must attend conference. Chief financial officers, in-house accountants and attorneys, and tax specialists are also encouraged to attend and learn about the key tax and regulatory issues for business aircraft owners and operators. Both Members and non-members of NBAA are invited to attend. LEARNING OBJECTIVES Attendees of this NBAA Tax, Regulatory & Risk Management Conference will learn how to: Successfully navigate conflicts between FAA regulations and tax planning when developing an ownership/operating structure Understand tax deductions and limitations in the context of acquiring and operating an aircraft Track non-business use of an aircraft and understand both the IRS fringe benefit rules and entertainment use disallowance Calculate, collect and remit Federal Excise Tax (FET) for domestic and international flights Prepare for and respond to FET audits dealing with management company arrangements Identify the tax benefits and risks with leasing structures and develop strategies to mitigate risks Evaluate state tax issues including scrutiny of leasing structures, property tax audits, and treatment of fractional shares Apply lessons learned from public company proxy statements to correctly report aircraft usage for SEC purposes Understand the IRS audit and appeals process including rights and obligations of the taxpayer Evaluate advantages and disadvantages of aircraft management vs. in-house flight departments Develop a compliance plan for the European Union Emissions Trading Scheme Manage international aircraft transactions, including title, escrow, payments and transfer of funds, taxes and customs Review common economic or operational goals, and the ownership and allocation structures which achieve them And more! REGISTER BY OCTOBER 3, 2013 FOR THE EARLY BIRD DISCOUNTED PRICE OF $1, Includes NBAA Member discount of $300 PLUS complimentary registration to NBAA2013! Registration is available online at:

3 AGENDA DAY 1: SUNDAY, OCTOBER 20, :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 The NBAA Tax, Regulatory & Risk Management Conference is a must-attend event for me, as it provides best practices to stay in compliance with complex FAA, IRS and SEC rules while also providing strategies to deliver the most value from our company s business aircraft. Even after attending the conference for a number of years, with the frequent regulatory changes in our industry, I always learn something new. PATRICK CUNNINGHAM, DIRECTOR OF AVIATION, PEPSICO, INC. 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 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 4 5

4 DAY 2: MONDAY, OCTOBER 21, :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 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 NBAA s Tax, Regulatory & Risk Management Conference is a great resource to keep up-to-date with the ongoing changes in tax laws and practices, as well as FAA regulations. Panelists are the best in the industry. Even the most complex issues are presented in a compelling way and easy to understand. SONIA ANDERSON, DIRECTOR OF FINANCE AND OPERATIONS, COVINGTON AVIATION LLC 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 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 Stewart Lapayowker, Stewart H. Lapayowker, P.A. (Moderator) 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 6 7

5 CPE CREDIT Attending this NBAA Tax, Regulatory & Risk Management Conference provides a maximum of 14.0 hours of recommended continuing education (CPE) credits. In accordance with the standards of the National Registry of CPE Sponsors, CPE credits have been granted based on a 50-minute hour. NBAA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, Web site: Course Level: Introductory Prerequisite: None Preparation: None required 2:40 p.m. 3:40 p.m. 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 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 Delivery Method: Group-Live Level of Knowledge: Overview Maximum CPE Credit: 14.0 hours Fields of Study: Taxes (8.0 hours maximum CPE recommended) Business Law (6.0 hours maximum CPE recommended) CPE Complaint Resolution Policy: For more information regarding administrative policies such as complaint and refund, please contact the National Business Aviation Association at (202) CLE CREDIT NBAA has not submitted this course for approval to any state CLE provider and will provides attorneys with an attendance confirmation letter to support their application for CLE credit in their respective states. Based on a 50-minute hour, the Conference may be eligible for a maximum of 14.0 CLE credits for the full course. CAM CREDIT Candidates for the NBAA Certified Aviation Manager (CAM) credential may earn one point toward their CAM application or renewal by attending this conference. 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 8 9

6 SPONSORS NBAA thanks its generous sponsors: PLATINUM GOLD CONFERENCE LOCATION & HOTEL INFORMATION Las Vegas Convention Center 3150 Paradise Rd Las Vegas, NV BOOK YOUR HOTEL TODAY AT Attendees are strongly encouraged to reserve rooms through NBAA's discounted room blocks. Travel Planners is the official housing and travel coordinator for NBAA2013 and the Tax, Regulatory & Risk Management Conference. Hotels are available at a variety of price points throughout the Las Vegas, NV area. SILVER Contact Travel Planners For help with NBAA2013 reservations or if you have questions about the NBAA2013 housing program, contact Travel Planners via at res@tphousing.com or by phone at (800) or (212) Aviation Financial Consulting, LLC Accounting Tax Consulting BRONZE 10 11

7 National Business Aviation Association 1299 Pennsylvania Ave. NW, Suite 550 Washington, DC SAVE THE DATES OTHER VALUABLE NBAA EVENTS NBAA will be hosting other events valuable for those with an interest in aviation tax, operational and regulatory issues. Please check for agendas and registration information, which will be available within the months preceding the events. Please if you are interested in sponsoring any of these programs: October 22 24, 2013 NBAA Business Aviation Convention & Exhibition (NBAA2013) Las Vegas, NV May 2, 2014 NBAA Business Aviation Taxes Seminar San Francisco, CA For additional information on NBAA s Tax, Regulatory & Risk Management Conference, visit