Program Schedule – 2021 Tax, Regulatory & Risk Management Conference

8:30 a.m. – 5 p.m.

Conference Registration

Location: W231 Lobby

8:30-9 a.m.

Continental Breakfast

Location: W231 Lobby

9-9:10 a.m.

Welcome and Introduction

9:10-9:45 a.m.

Business Aviation: Adapting to the “New Normal”

Presented by: Ellen Urell, Bloomberg L.P.
Rolland Vincent, JETNET iQ

Hear from industry experts on the current state of the business aircraft market and tax planning challenges presented by the pandemic.

• What are trends in the new and pre-owned business aircraft market and is this level of activity projected to continue?
• How do owners and buyers view the current market and are they confident about the future?
• With changing work and commuting patterns, what has the impact been on business aviation and how does this change planning considerations?

9:45-10:40 a.m.

Federal Tax Planning for Aircraft Purchases: Myth vs. Reality

Presented by: Joanne Barbera, Barbera & Watkins, LLC
Stewart Lapayowker, Lapayowker Jet Counsel, P.A.

Learn about the key Federal tax implications for a company that is planning to purchase a business aircraft. This scenario-based session will feature a discussion between a hypothetical company CFO and the company’s aviation/tax counsel for the first time.

• The CFO will describe the company’s anticipated use of the aircraft, corporate structure and objectives, including taking advantage of bonus depreciation, planning for non-business use from an IRS, FAA and SEC perspective and understanding its impact on the company and individual, the effect and purpose of leasing and exposure to Federal Excise Tax.
• The conversation will address practical, real-life scenarios (names changed to protect the innocent).
• This session will be an introduction to federal tax topics that will be covered in more detail during upcoming sessions.

10:40-11 a.m.

Morning Break

Location: W231 Lobby

11 a.m.-12 p.m.

Navigating the Complexities of Immediate Expensing

Presented by: Angel Houck, Houck & Christensen CPAs, LLC
Alvaro Pascotto, Law Offices of Alvaro Pascotto

Immediate expensing is a key driver of the business aircraft market – this session will review why careful planning is required to realize this benefit and stay ahead of potential audit risks.

• What is depreciation and the various methods – MACRS vs. ADS?
• Sample analysis to determine if aircraft purchase qualifies for immediate expensing.
• How does non-business use tie into depreciation?
• Repairs and improvements – What is eligible for depreciation and how are the costs depreciated?

12-1:15 p.m.

Lunch

Location: W228

1:15-2 p.m.

Reimbursements Under Part 91: Myth vs. Reality

Presented by: Eileen Gleimer, Crowell & Moring LLP
Cliff Maine, Barnes & Thornburg, PLC

There are limited options for reimbursement under Part 91 of the Federal Aviation Regulations, which can provide added flexibility for aircraft ownership – using real-world examples, this panel will discuss how to analyze reimbursement options.

• Review key differences between FAR Parts 91 and 135.
• Explain types of reimbursements that occur under Part 91 for non-business use of aircraft and implications for IRS and SEC compliance.
• Review permissible reimbursements for inter-company charges, aircraft sharing, etc. and strategies to avoid common pitfalls.

2-3 p.m.

Non-Business Use: Planning for Tax and Regulatory Compliance

Presented by: Ryan DeMoor, Satcom Direct, Inc.
David Shannon, Lewis Brisbois Bisgaard & Smith LLP

When making an aircraft available for non-business use, there are numerous tax and regulatory considerations – our panel of experts will answer your questions on this challenging topic.

• Discuss tax effects of non-business use to both the company and employee.
• Explain how SIFL, entertainment use disallowance, and SEC rules company into play.
• Provide real-world examples and calculations to describe the potential impacts of personal use.

3-3:15 p.m.

Afternoon Break

Location: W231 Lobby

3:15-4:15 p.m.

Avoiding State Tax Surprises

Presented by: Alan Burnett, CenterPoint Aviation Law PLLC
Joe Park, Bizjetcpa, Inc.

State tax planning is a critical part of the aircraft transaction and must be re-evaluated frequently during aircraft ownership. This expert panel will discuss how to proactively plan for sales/use, property tax, and related issues.

• Analyze common state tax planning strategies including aircraft leasing, fly away, occasional sale and other exemptions.
• Understand the implications when an aircraft spends time in multiple jurisdictions and the importance of proactive planning.
• Review other state tax issues including property tax and registration fees.

4:15-5 p.m.

Risk Management Update

Presented by: Todd Guelich, AssuredPartners Aerospace
Ehsan Monfared, YYZ Law; Brooks Pettit, Vaerus Aviation

The last several years have presented unprecedented changes in business aircraft insurance markets- this session will review the state of the insurance market, trends, and how to integrate risk management into the aircraft transaction.

• Learn the importance of understanding key insurance terms such as Named vs. Additional Insured and Waivers of Subrogation.
• Understand why consulting with insurance professionals early in an aircraft transaction and frequently during ownership is key.
• How have recent business aviation accidents impacted the insurance markets?

5 p.m.

Evening Networking Reception

Location: W231 Lobby

8:30 a.m. – 5 p.m.

Conference Registration

Location: W231 Lobby

8:30-9 a.m.

Continental Breakfast

Location: W231 Lobby

9-9:10 a.m.

Welcome and Introduction

9:10-10:10 a.m.

Emerging Federal Tax and Regulatory Issues

Presented by: John Hoover, Holland & Knight
Greg Rosica, Ernst & Young LLP

Recent IRS regulations that limit deductions for commuting costs, meals, and business entertainment have implications for aircraft owners and operators. Speakers will analyze those changes and other final rules related to the Tax Cuts and Jobs Act that impact business aviation.

• Analyze the Excess Business Loss Limitation rules (IRC 461 (l)) and their impact on aircraft ownership structures.
• Review the Interest deduction limitation (IRC 163(j)) and potential planning strategies.
• Learn about changes/limits on commuting flights (IRC 274(l)) and the interaction with entertainment disallowance.

10:10-11 a.m.

Federal Excise Tax Update and Opportunities for Aircraft Management

Presented by: Andy Priester, Priester Aviation
Nel Stubbs, JSSI Consulting

Recent final regulations from the IRS provide clarity and potential planning opportunities for aircraft owners, management companies, and charter operators. Using real-world scenarios, our panel will analyze the applicable federal excise tax (FET) rules and their implementation.

• Learn how the exemption from FET for certain payments from aircraft owners to management companies was implemented in final IRS rules.
• Analyze common aircraft management scenarios to understand best practices for the new exemption.
• Review general FET calculations and applicability for air charter operators and brokers.

11-11:30 a.m.

Morning Break

Location: W231 Lobby

11:30 a.m. – 12:30 p.m.

Aircraft Leasing Compliance Strategies

Presented by: David Hernandez, Vedder Price
Lori McGee, Jetstream Aviation Law, P.A.

Aircraft leases are a very important structuring tool to maximize the efficient use of an aircraft, but failure to implement leases correctly have significant tax and regulatory penalties.

• Discuss scenarios where aircraft leases can help maximize aircraft utilization.
• Analyze the FAA’s increased enforcement focus to identify, deter and punish impermissible leasing activity.
• Review the recent FAA actions and penalties for leases that violated regulatory requirements.

12:30-1:30 p.m.

Lunch

Location: W228

1:30-2:30 p.m.

Planning for Aircraft Exports

Presented by: Katie DeLuca, Harper Meyer
Scott McCreary, McAfee & Taft

Learn about common misconceptions surrounding aircraft exports and how the issue can be overlooked during a transaction. Our speakers will review how an export is defined, filing requirements, and recent enforcement actions.

• Understand the role of the various federal agencies charged with enforcing the rules for aircraft exports.
• Learn about filings that must be made when aircraft are exported, including the Electronic Export Information filing.
• Develop a strategy for including aircraft export compliance early in the transaction process.

2:30-3:15 p.m.

FAA Registry Modernization Update

Presented by: Jeff Towers, TVPX

The FAA is embarking on a significant modernization of the Aircraft and Airmen Registry that will introduce new capabilities. Learn about the status of this project and how it could impact the closing process.

• What additional information will be required to comply with new requirements as part of the registry modernization?
• For practitioners what are some of the practical impacts of moving to a web-based FAA registry?

3:15-3:30 p.m.

Afternoon Break

Location: W231 Lobby

3:30-4:15 p.m.

Are you Prepared for an IRS Audit?

Presented by: Keith Swirsky, GKG Law, P.C.

To conclude the conference, we will review the critical federal tax code sections that frequently apply to business aircraft ownership and operation in the context of potential audit risks.

• Based on the past two days of sessions, what are the issues covered that frequently result in IRS audits?
• Review real-world audit scenarios, how did the taxpayer respond, what was the outcome?
• For companies that are successful in defending audits, what are common themes and best practices?