|Day 1: Sunday, Oct. 14, 2018|
|8:30 a.m. – 5:00 p.m.||Registration|
|8:30 a.m. – 9:00 a.m.||Continental Breakfast|
|9:00 a.m. – 9:15 a.m.||Welcome & Introduction|
|9:15 a.m. – 9:45 a.m.||Tax Reform Update
Scott O’Brien, NBAA
Although the Tax Cuts and Jobs Act is now law, significant questions remain for business aviation about how key sections, including bonus depreciation and provisions related to aircraft management services, will be interpreted. Learn about the work NBAA is doing to influence the regulatory agencies and key steps in the guidance process. Also, many tax reform provisions, including bonus depreciation, have expiration dates and Congress is already considering “phase two” legislation; learn about the status of this legislation.
|9:45 a.m. – 10:45 a.m.||Introduction to FARs & Permissible Operating Models
David Hernandez, Vedder Price P.C.; Cliff Maine, Barnes & Thornburg LLP; Jeff Wieand, Boston JetSearch, Inc
Are your flight operations legal from an FAA perspective? That’s the question the FAA currently is asking hundreds of operators in connection with a nationwide audit. This panel will analyze the most common permissible operating structures and explain limitations of Part 91 and why “holding out to the public” and receiving “compensation” regarding air transportation are such critical concepts. The panelists will discuss the various Part 91 and 135 scenarios including timesharing agreements, dry leasing, operational control, the associated regulatory risks, and the real and serious consequences of failing to comply with the FAA regulations.
|10:45 a.m. – 11:00 a.m.||Break|
|11:00 a.m. – 12:00 p.m.||The Big Four Federal Tax Issues
Jed Wolcott, Wolcott & Associates CPA’s, P.A.
This session will introduce the “Big Four” IRS regulations: ordinary and necessary expenses, hobby loss rules, passive loss limitations and non-business use. The presentation will address the ownership structures that create problems and how to avoid negative consequences from these regulations, strategies and defenses to overcome problems on audit, and the effect on the deductibility of aircraft costs, expenses, and depreciation.
|12:00 p.m. – 1:15 p.m.||Lunch|
|1:15 p.m. – 2:15 p.m.||Bonus Depreciation
Keith Swirsky, GKG Law, P.C.
This presentation will cover the rules regarding aircraft depreciation deductions, including the new bonus depreciation rules, the mechanics under Section 280F for determining eligibility for MACRS deprecation, the so-called “leasing company trap” and how to avoid it, and other relevant planning considerations.
|2:30 p.m. – 3:30 p.m.||Breakout Sessions
Option A: New & Innovative Air Transportation Models: Increased Accessibility, Transparency & Regulatory Hurdles
Option B: Basic Federal Excise Tax Rules & Reporting Requirements
|3:30 p.m. – 4:00 p.m.||Afternoon Break|
|4:00 p.m. – 5:00 p.m.||Breakout Sessions
Option A: Passive Activity & Hobby Loss Rules
The passive loss and hobby loss limitations can apply to business aircraft, particularly those owned in a special purpose entity. This session will cover those limitations, with particular emphasis on the activity grouping rules, grouping elections, the Morton case and IRS audits.
Option B: Recent Trends In Business Aircraft Finance
This session will explore developments, trends and the future of business aviation finance. Topics will include: How have recent tax law changes affected aircraft finance pricing and product offerings? Should you lease, borrow or pay cash? Will rising interest rates disrupt the market? How are financial institutions reacting to reduced new and pre-owned inventory levels? Is there a new normal for residual values? What does the future of business aviation finance look like? Audience questions and participation will be encouraged.
|5:00 p.m. – 6:00 p.m.||Networking Reception|
|Day 2: Oct. 15, 2018|
|8:30 a.m. – 9:00 a.m.||Registration|
|8:30 a.m. – 9:00 a.m.||Continental Breakfast|
|9:00 a.m. – 9:10 a.m.||Welcome and Conference Introduction|
|9:10 a.m. – 10:10 a.m.||Business Aircraft Use Policies – A Practical Perspective
Joanne Barbera, Barbera & Watkins, LLC; Ryan DeMoor, Satcom Direct, Inc.
Does your company have a good business aircraft use policy? How do you manage aircraft personal use? Learn who benefits from and is involved in developing a policy, what topics to cover, when to develop and update the policy and where the policy should live. This presentation will cover how to develop a well-tailored business aircraft use policy and the dangers of not having one.
|10:10 a.m. – 10:30 a.m.||Break|
|10:30 a.m. – 11:30 a.m.||Introduction to Tax Rules Impacting Non-Business Use of Corporate Owned Aircraft
Angel Houck, CliftonLarsonAllen LLP; Joe Park, BIZJETCPA
Learn the tax implications of non-business use as it relates to the fringe benefit wage imputation and the expense disallowances related to business entertainment, personal entertainment, and commuting uses of the aircraft. This presentation will provide a thorough discussion of the general rules and identify the complexities often encountered by special rules including illustrative calculations.
|11:30 a.m. – 12:30 p.m.||Personal Use Audits
Rick Farley, PricewaterhouseCoopers LLP; Doug Stewart, Satcom Direct, Inc.
Through the lens of audit scenarios, this session will provide a better understanding of how an IRS auditor will identify and analyze personal use of business aircraft. The examples will focus on topics such as understanding the types of personal flights that garner greater IRS scrutiny, understanding other issues raised by the IRS during such audits, and reviewing the substantiation requirements of flights to avoid any potential pitfalls.
|12:30 p.m. – 1:45 p.m.||Lunch|
|1:45 p.m. – 2:45 p.m.||Breakout Sessions
Option A: Non-traditional Structures & The Family Office
Alvaro Pascotto, Law Offices of Alvaro Pascotto
There are unique federal income tax consequences when an aircraft is owned and operated outside a traditional trade or business. This session will address what structures may best accommodate the use by individuals, entrepreneurs, their family offices, and diversified interests and alternative investments. How the changes imposed by Tax Cuts and Jobs Act impact expense deductions, depreciation and personal use, as well as limitations and compliance matters also will be reviewed.
Option B: SEC Disclosures, Perquisites & Recent Enforcement Actions
This session will address the reporting disclosures required by the SEC when a company allows its senior executives to use company-provided aircraft for personal use. The session also will discuss the issues involved with a recent $1.75 million enforcement penalty the SEC imposed on a public company. The speakers will provide an analysis of the SEC definition of perks and will delve into examples of travel which may be excluded from taxable income as a business expense, but still be viewed as a perquisite.
|3:15 p.m. – 4:00 p.m.||Managing Business Aviation Risk: From Policies to Procedures
Todd Guelich, AirSure Limited; Stephen Hofer, Aerlex Law Group
Unfortunately, aviation accidents and incidents happen. After an event, aircraft owners and operators may discover there are costly out-of-pocket costs that may not be covered by their insurance policies. This panel will examine situations in which claims are denied and identify how policies could have been changed beforehand to provide greater coverage. Better risk management procedures operators can implement also will be discussed.
|4:00 p.m. – 5:00 p.m.||International Transactions
Stewart Lapayowker, Lapayowker Jet Counsel, P.A.; James Meyer, Harper Meyer Perez Hagen O’Connor & Albert LLP
Aircraft are based all over the world, and with the landscape of business aviation becoming more and more global, this presentation will provide a transparent look at what it takes to acquire an aircraft registered outside the U.S., or to sell a U.S. registered aircraft to a non-U.S. buyer.
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