Review the schedule for the 2022 Tax, Regulatory & Risk Management Conference, taking place Oct. 16-17, 2022, in Orlando, FL.

Day 1 – Sunday, Oct. 16

9-9:10 a.m.

Welcome and Introduction

9:10-10 a.m.

Setting the Stage: Business Aircraft Values and Tax Policy Outlook

Angel Houck, Houck & Christensen CPAs
Rollie Vincent, JETNET iQ

The fast-paced business aircraft market presents challenges and opportunities for aircraft buyers and sellers. Learn about the latest industry forecasts as well as details on related potential federal tax policy changes that could impact aircraft transactions.

  • Analyze market trends in business aircraft, including demand and supply signals, owner/operator sentiment, values, and the near-term outlook.
  • Learn about upcoming related tax changes, such as phase down of bonus depreciation, excess business loss provisions and other potential modifications to Tax Cuts and Jobs Act provisions and how they may further inform future markets.
  • Understand differences between market depreciation and tax depreciation.

10-11 a.m.

Coordinating Regulatory and Tax Planning with the Transaction Team

Robert Davis, FORVIS LLP
Lori McGee, Jetstream Aviation Law, P.A

Properly managing regulatory compliance and tax planning for aircraft “takes a village,” but who lives in each residence is an important consideration. Attendees will be introduced to the traditional roles and responsibilities of each party in a “typical” aircraft transaction, the key concepts for FAA and tax planning, and how they fit together to drive decisions on structure.

  • Learn when reimbursements are permitted under the Federal Aviation Regulations (FARs), including an overview of options under FAR 91.501 and key differences between FAR Part 91 and 135.
  • Review the array of taxes (e.g., sales tax, use tax, property tax, state income tax, federal income tax, federal excise tax) that need to be considered and optimized.
  • Examine the federal tax code sections/concepts that can limit deductibility of depreciation and operating expenses.

11-11:30 a.m.

Morning Break

11:30 a.m.-12:30 p.m.

Maximizing Tax Depreciation While Avoiding Pitfalls

David Shannon, Lewis Brisbois
Chris Younger, Crowell & Moring LLP

Successful planning to achieve business aircraft tax depreciation deductions requires a detail-oriented approach and analysis when structuring ownership and operations. Learn about aircraft depreciation schedules, which party is eligible to take depreciation deductions and rules for determining how an aircraft is depreciated for federal income tax purposes.

  • Learn what factors limit depreciation deductions. What are the impacts of personal use, hobby loss limitations and passive activity classification?
  • Hear an update on bonus depreciation. How will the incremental phasedown of bonus depreciation from 100% to 0% work?
  • Certain Aircraft vs. Long Term Production Property: What are the differences, and how they may benefit a new aircraft purchaser?

12:30-1:30 p.m.

Lunch

1:30-2:30 p.m

Managing Non-Business Use of Aircraft

Sue Folkringa, Aviation CPAs
Ruth Wimer, Winston & Strawn

Occasionally a business aircraft is made available to employees for reasons not directly related to the business of the company. Aircraft operators must be familiar with the complex tax, regulatory and record-keeping implications of these flights.

  • Learn how to define and categorize personal use. What is it, why, and how do we classify flights and passengers?
  • Analyze real world flight and passenger scenarios you may encounter in managing personal use flights, including how to calculate imputed income.
  • Discuss record-keeping best practices and how to track flights for SEC and IRS purposes.

2:30-3 p.m.

Setting Expectations with Aircraft Use Policies

Ellen Urell, Bloomberg LP

Creating a well-crafted aircraft use policy provides clarity to the flight department, company and aircraft users on how to maximize the utility of a business aircraft. Learn why having a use policy is helpful and the specific benefits.

  • Review how to develop the policy, who is involved and how to onboard users.
  • Strategize about building flexibility into a policy to respond to the unforeseen (e.g., pandemic, change in aircraft use profile, change in user base or fleet makeup).
  • Discuss policy enforcement, pitfalls and other challenges.

3-3:15 p.m.

Afternoon Break

3:15-4:15 p.m.

Analyzing Limitations on Tax Deductions

John Hoover, Holland & Knight
Joe Park, BizJet CPA

Deduction limitations on business aircraft, including the ordinary and necessary and reasonable business expense test, require advance planning. The elimination of the deduction of employee business expenses also presents new planning challenges.

  • Review how passive activity and hobby loss rules, including applicable grouping rules, impact business aviation.
  • Analyze the impact of making aircraft available for third-party charter through a management company, or dry lease of aircraft between regarded entities.
  • Discuss examples of “non-traditional” structures that present passive/hobby loss challenges.

4:15-5 p.m.

​Best Practices for Structuring Aircraft Dry Leases

David M. Hernandez, Vedder Price P.C.
David Norton, Shackelford, Bowen, McKinley & Norton, LLP

Aircraft dry leasing is an extremely important tool available to aircraft owners and operators, but not understanding how they should be properly set up can lead to significant regulatory, tax and risk-management issues.

  • Discuss how dry leases are used as planning tools, what are the proper uses of dry leases and what pitfalls to avoid.
  • Follow-up on key 91.501 topics from the “Coordinating Regulatory and Tax Planning” session.
  • Explain FAA enforcement focus on dry leases/illegal charter.

5-6 p.m.

Evening Reception

Day 2 – Monday, Oct. 17

9-9:10 a.m.

Welcome and Introduction

9:10-10 a.m.

European Union Customs and Tax Update

Adrian Jones, Martyn Fiddler Aviation

Operating business aircraft in the European Union and the UK requires careful attention to importation, VAT and other customs issues. Working with your advisors well in advance of flights to Europe and the UK is critical to staying in compliance with these complex rules.

  • Learn about strategies for aircraft importation as well as managing VAT and other related customs issues.
  • Hear a Brexit update and overview of market impacts.
  • eview VAT implications for business aviation and recovery options.

10-10:50 a.m.

Protecting Privacy and Security of Aircraft Owners

Stewart H. Lapayowker, Lapayowker Jet Counsel, P.A.
Jeff Towers, TVPX

For many owners, privacy and security of business aircraft operations are an important consideration during the transaction process, and throughout the entirety of ownership and operations. Proactive planning and an understanding of the rapid advancements in flight tracking technology are crucial to a successful strategy.

  • Learn how owner trusts can be used to enhance privacy of aircraft owners, and how they fit into the transaction process.
  • Analyze the latest flight tracking technology, how ADS-B mandates present security challenges, a real-time demonstration of aircraft ownership/flight tracking, and strategies aircraft owners/operators can use to manage risk.
  • Review the Corporate Transparency Act and potential implications for business aircraft owners.

10:50-11:15 a.m.

Morning Break

11:15 a.m.-12 p.m.

Federal Excise Tax Calculations for Part 135 Operators

Ryan DeMoor, MySky
Nel Stubbs, JSSI Consulting

It is important to understand who is responsible for federal excise tax (FET) and how to perform the tax calculations. For Part 135 air charter operators, brokers, customers and aircraft owners, there are additional challenges to discuss related to filings and who is responsible.

  • Use scenarios to explain more complex FET calculations, including international, Alaska/Hawaii flights, and the 225-mile zone.
  • Review how Part 135 operators complete and file FET forms, including the regular and alternate methods, deposits and key IRS forms.
  • Discuss who is responsible for FET when brokers are involved.
  • Review charter invoicing best practices.

12-1 p.m.

Lunch

1-1:45 p.m.

Federal Excise Tax “Hot Topics” for Owners and Operators

Mark Dennen, Solairus Aviation
Alvaro Pascotto, Law Offices of Alvaro Pascotto

With business aircraft often being used for both FAR Part 91 and Part 135 flights, it is important to understand when FET is due, stay prepared for potential audits as well as stay current on FET changes to take advantage of planning opportunities.

  • Learn about FET regulatory and legislative changes, including the exemption for aircraft owner flights.
  • Discuss recent FET audit activity by the IRS, including issues involving air charter brokers.
  • Review record-keeping best practices when working with aircraft charter/management companies.

1:45-2:45 p.m.

Business Aircraft Exports: Roles and Responsibilities

Katie DeLuca, Harper Meyer (moderator)
Gerry Horner, U.S. Census Bureau
Tim Mooney, Bureau of Industry and Security

Selling or leasing aircraft to foreign owners, or basing a U.S.-registered aircraft outside of the country, requires regulatory compliance with the FAA, U.S. Department of Commerce’s Census Bureau, Bureau of Industry and Security, Customs and Border Protection, and more. Learn about compliance best practices, including details on electronic export information (EEI) filings.

  • Review the latest guidance on aircraft export issues and EEI filings from key regulators with oversight of the process.
  • Utilize detailed aircraft transaction scenarios to review roles and responsibilities of the team during an aircraft export.
  • Discuss export licensing issues and end-user/end-use limitations.

2:45-3 p.m.

Afternoon Break

3-3:45 p.m.

Managing an Aviation Insurance Policy: What you Need to Know

Alan Goldstein, CPA
Lamont Rosemond, QBE North America
Brint Smith, Alliant Insurance Services

After purchasing an aviation insurance policy, many assume work is done. However, policies need to be actively managed, including working with your risk management team to understand insurance certificates and endorsements. Review best practices for the flight department in handling risk management issues.

  • Describe common insurance certificates and endorsements (e.g., what do they mean, what are possible implications for the aircraft owner?).
  • Learn about trends in business aviation insurance markets.

3:45-4:45 p.m.

Managing the Unexpected: Aircraft Operations Changes

Joanne Barbera, Barbera & Watkins
Paul Lange, The Law Offices of Paul A. Lange

After the initial aircraft transaction, there may be changes to the business aircraft use profile, underlying ownership structure, or even where the aircraft is based. These changes have implications for federal and state tax planning as well as FAA regulatory compliance.

  • evelop a strategy for reviewing how changes, such as more or less third-party charter and additional non-business use or commuting flights impact planning decisions.
  • Review state tax scenarios, such as when an aircraft spends more time in a certain state (or multiple states) than expected.
  • Discuss the process for managing change and how to engage your transaction and operational teams.

4:45-5 p.m.

Closing Comments

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