DEDICATED TO HELPING BUSINESS ACHIEVE ITS HIGHEST GOALS. BUSINESS AVIATION TAXES SEMINAR May 4-5, 2017 Marina del Rey, CA REGISTER TODAY www.nbaa.org/tax-seminar/2017 Presenting Sponsor
PROVEN TAX PLANNING STRATEGIES FOR AIRCRAFT OWNERS AND OPERATORS The NBAA Business Aviation Taxes Seminar on May 4 to 5 in Marina del Rey, CA features an all new one-and-a-half-day format providing in-depth presentations on the most important tax planning topics. Beginning on the afternoon of May 4, the complex and evolving IRS rules on cost disallowances for entertainment use flights will be analyzed in three dedicated sessions. On May 5, expert presenters will lead interactive sessions on federal and state tax considerations that offer planning opportunities and flag potential pitfalls. All of the presentations will focus on the latest regulatory developments and recent audit activity. Held at the Ritz Carlton Marina del Rey, the seminar includes an evening reception and value added networking opportunities throughout the event. 7 4 1 8 9 0 5 6 2 3 Entertainment Use Regulations: Learn best practices from the experts, develop strategies for calculations and create a process for classifying flights. IRC Section 280F: Understand why these rules and associated business use tests impact depreciation and ownership structures. Family Offices and Closely Held Businesses: Review unique tax planning strategies for the increasing number of aircraft not held in a traditional corporate structure. WHO SHOULD ATTEND Anyone involved with the management of tax, accounting and legal topics associated with business aircraft, including: attorneys, accountants, tax advisors, aviation professionals, flight department personnel, aircraft owners/operators, and others. Both members and non-members of NBAA are welcome and encouraged to bring their general legal counsel or accountants who may not specialize in aviation. REGISTRATION IS AVAILABLE ONLINE:
SEMINAR LOCATION AND HOTEL INFORMATION All seminar events will be held at The Ritz-Carlton, Marina del Rey where NBAA has secured a limited number of discounted rooms for attendees. The Ritz-Carlton 4375 Admiralty Way Marina del Rey, CA 90292 Telephone: (310) 823-1700 Room Rate: $279/night plus taxes Cut-Off Date: April 11, 2017, or when room block sells out whichever comes first. Online Reservations: www.nbaa.org/tax-seminar/housing Register by April 13, 2017 for the early bird discounted price of $950 Early-Bird Registration Saves $250! www.nbaa.org/tax-seminar/2017
AGENDA THURSDAY, MAY 4 1:30 1:40 p.m. Welcome and Introduction 1:40 2:40 p.m. Lessons Learned: Five Years of Working with the Entertainment Use Final Regulations Speakers: Rick Farley, PwC; John Hoover, Cooley LLP Take a deep dive into the practical challenges that arise when applying the entertainment use disallowance rules under IRC 274 to business aviation. Common questions including the ability to utilize straight-line depreciation for disallowance calculations will be discussed in detail. Challenging elements of the rules dealing with interest allocation and deadhead legs will also be reviewed. Finally, learn how leasing and charter can be used as a planning tool and discuss best practices for audit preparation. 2:40 3:40 p.m. Entertainment Use Disallowance Calculations Speakers: George Rice, Rice & Associates; Tom Wagner, RSM US LLP The final entertainment use disallowance rules require complex calculations, detailed recordkeeping, and close coordination between a flight department and its internal or external tax advisors. Through a review of sample spreadsheets, understand differences between the disallowance calculation methods. Details on an organized process for tracking entertainment use, classifying passengers and retaining key documents will also be discussed. Finally, the impact of income imputation, timeshare reimbursements and charter flights on entertainment use calculations will be covered in detail. 3:40 4:00 p.m. Afternoon Break 4:00 5:00 p.m. Defining Entertainment Use: Case Law and Scenarios Speakers: Doug Stewart, AircraftLogs (moderator); Phil Crowther, Law Offices of Phil Crowther; Ruth Wimer, McDermott Will & Emery Through a review of IRS guidance and case law, develop a working definition of what constitutes an entertainment use flight that is subject to the cost disallowance. Learn to apply this definition to common practical scenarios, including travel between homes and spouse or family member travel to business events. Also discuss cases and guidance in IRC 162 dealing with air travel costs. Finally learn about best practices to comply with travel expense deductibility rules and meet substantiation requirements. 5:30 7:00 p.m. Evening Reception for Attendees and Speakers
FRIDAY, MAY 5 9:00 9:10 a.m. Welcome and Day 1 Recap 9:10 10:00 a.m. Cost Reimbursement Options for Business Aviation Flights Speakers: Aaron Goerlich, Garofalo Goerlich Hainbach; David Hernandez, Vedder Price Creating an aircraft ownership and operating structure that accomplishes tax planning goals while also complying with often conflicting FAA regulations is a challenge. Understand how FAA Part 91 regulations can allow cost sharing though arrangements such as timeshares and the potential tax consequences. Also, review operating structures available for business aircraft and the latest FAA legal interpretations on cost sharing. Finally, review the complex citizenship rules for aircraft registration and the use of owner trusts as planning tools. 10:00 10:50 a.m. Federal Excise Tax Considerations for Aircraft Owners and Operators Speakers: Joanne Barbera and Melissa Stanley, Barbera & Watkins Flights operated under either Part 91 or 135 of the Federal Aviation Regulations can be subject to federal excise taxes (FET) requiring careful planning. Analyze how FET can have an impact on structures involving compensation or reimbursement and discuss non-compliance risks and defenses. Also learn about potential FET implications for structures involving a single member LLC and hear about air transportation tax issues for management companies and emerging business aircraft utilization business models. 10:50 11:10 a.m. Morning Break 11:10 12:00 p.m. State Tax Planning: Focus on Western States Speakers: Vicky Boladian, Aerlex Tax Services; Jordan Miller, CenterPoint Aviation Law Learn how to implement a state tax planning strategy that takes into account federal tax issues and FAA considerations. Examine the relevance of property taxes on aircraft ownership in key western states and challenging property tax apportionment issues. Also, discuss the latest developing state tax issues, including renewed focus on related party leasing structures. In California, understand the differences between common exemptions and specific requirements for achieving each exemption. 12:00 1:30 p.m Lunch
1:30 2:00 p.m. Tax Reform and Congressional Priorities: The Impact on Business Aviation Speaker: Gary Gasper, Washington Counsel Ernst & Young (invited) Comprehensive tax reform plans currently being discussed by the Administration and Congress will have a significant impact on aircraft owners and operators. For example, learn how fundamental changes to the depreciation system that are under discussion could affect aircraft transactions. The potential repeal of the Affordable Care Act and elimination of the Net Investment Income Tax will also be discussed in detail. 2:00 3:00 p.m. Aviation Tax Planning for Closely Held Businesses and Family Offices Speakers: Alvaro Pascotto, Law Offices of Alvaro Pascotto Analyze common ownership and operating structures used by closely held businesses or family offices and learn to identify unique federal tax considerations. Focus on the at-risk rules under IRC 465 and their application to these structures. Also, analyze the specific federal tax issues for ownership structures involving partnerships and S corporations and learn about the latest IRS audit issues. 3:00 3:20 p.m Afternoon Break 3:20 4:10 p.m. Passive Activity Loss Rules for Business Aircraft Transactions Speakers: Keith Swirsky, GKG Law The passive activity loss limitation rules under IRC 469 are a common audit target, and apply to a variety of common aircraft ownership/operating structures. Analyze how these rules apply to dry leases and charters to related or third parties. Since the exceptions to the passive loss rules are complex, learn how they can apply to common business aviation activities. Finally, review the grouping rules, their potential planning benefits and recent IRS guidance on the subject. 4:10 5:00 p.m. IRC Section 280F: Planning Strategies for Listed Property Speakers: Jed Wolcott, Wolcott & Associates (moderator); Ryan DeMoor, Amway; Sue Folkringa, Wolcott & Associates Properly applying the rules and tests under IRC 280F is critical, as in most cases that will determine how a business aircraft is depreciated for tax purposes. Learn how to apply the 25%/50% tests as they relate to qualified business use. Using specific examples, understand how common aircraft utilization strategies are defined for 280F purposes. Also analyze how falling below certain business use thresholds can have significant tax depreciation impacts. Finally, review the unique 280F challenges for certain related party leasing structures commonly used in business aviation. 5:00 5:10 p.m. Closing Remarks
TITLES OF ATTENDEES AT 2016 SEMINAR CONTINUING EDUCATION CREDIT CPE CREDIT Attending this NBAA Business Aviation Taxes Seminar provides a maximum of 11.0 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, 37219-2417. Website: www.nasba.org. Delivery Method: Group-Live Program Level: Intermediate Prerequisites: None Advance Preparation: None Required Recommend CPE Credit: 11.0 Fields of Study: Taxes (8.0 hours maximum CPE recommended) Business Law (3.0 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) 783-9000. CLE CREDIT NBAA has not submitted this Seminar for CLE approval to any state provider. Upon request, NBAA will provide an attendance confirmation letter to support CLE applications. Based on a 50-minute hour, this Seminar may be eligible for up to 11.0 CLE credits.
National Business Aviation Association 1200 G Street NW, Suite 1100 Washington, DC 20005 SPONSORS NBAA thanks the sponsors of the 2017 Business Aviation Taxes Seminar: PLATINUM An Company VedderPrice GOLD SILVER BRONZE If you would like to sponsor the 2017 Tax Committee Seminars/Conferences, please contact Scott O Brien at sobrien@nbaa.org.