Program Schedule – 2023 NBAA Business Aviation Taxes Seminar

5:30-7:30 p.m.

Networking Reception

Rooftop Lounge Chicago – The Ritz-Carlton

9-9:10 a.m.

Welcome & Introduction

9:10-10 a.m.

Overview of the Gray Areas: Tax and FAA Regulatory Complexities

• Discuss the relationship between IRS and FAA regulatory frameworks and the impact on tax planning strategies
• Analyze the differences between FAR Part 91 and 135
• Analyze various gray areas, such as flight sharing, share ownership and the flight department company trap
• Preliminary discussion on permissible leasing structures

10-10:50 a.m.

Aircraft Leasing Complexities

• Explain the relevant FAA and tax concerns and gray areas
• FAA and tax concerns relating to shared and joint use of aircraft.
• Analyze the application of the exceptions to the listed property rules provided in IRC Sec. 280F(c)(1) and the entertainment use disallowance provisions provided in IRC Sec. 274(e)(8) in connection with lessor/lessee activities and deductions, particularly when the parties to an aircraft lease are separate taxpayers.
• Explain how IRC Sec. 280F(c)(2) through (4)” operates for aircraft lessees.
• Discuss FAA issues such as the transfer of operational control

10:50-11:15 a.m.

Morning Break

11:15 a.m. – 12 p.m.

Aircraft Depreciation Gray Areas: 100% Bonus Is Going Away, So Now What?

• Explain the current status of bonus depreciation including the phase down schedule
• Does depreciation drive federal income tax planning? Should it?
• Discuss aircraft MACRS requirements and alternative options
• What are the most common limitations on claiming depreciation deductions?
• What do you mean I didn’t qualify for 100% bonus depreciation, but I have a “Certain Aircraft?”
• Depreciation “worst practice” hypothetical

12-1 p.m.

Lunch

1:15-2 p.m.

Compliance Best Practices for Commuting Deduction Disallowance

• How does the disallowance on commuting deductions under IRC Sec. 274(l) create challenges for aircraft owners?
• Review best practices to comply with the final rules and planning opportunities to manage potential disallowances
• Does this disallowance require changing or reviewing aircraft use policies?
• Deduction disallowance hypothetical example

2-2:45 p.m.

Why Aircraft Owners May Owe Federal Excise Taxes and Don’t Realize It

• Review of final FET exemption for aircraft owner payments to management companies and how this works in practice/opportunities it provides
• Analyze the gray areas associated with the “aircraft owner” definition (IRC Sec. 4261(e)(5) and related regulations) and aircraft leasing arrangements
• Discuss the issues associated with non-affiliated groups, time sharing and interchange agreements and other third-party arrangements

2:45-3:10 p.m.

Extended Networking Break

3:10-4 p.m.

Regional State Sales and Use Tax Planning for Aircraft Owners

• Review state tax basics: How does sales/use tax work? Why do use tax considerations continue to be relevant after an aircraft purchase is completed?
• Analyze regional differences (Illinois, Wisconsin, Indiana, Michigan and Ohio); review the requirements
• When should sales tax planning be accomplished, what is the impact on the transaction process and post-closing requirements?
• Discuss unique state tax issues including how to handle groups of buyers and co-owners that could be in different states

4-4:50 p.m.

Other Gray Areas That You Should Be Aware of in 2023

• Preparing for an IRS audit or FAA enforcement action
• Documentation and substantiation recommendations – what’s right for your operations
• International concerns (Russia/Belarus sanctions, tax and foreign income considerations)
• FAA leasing enforcement updates, recent enforcement issues and risk mitigation strategies

4:50-5 p.m.

Additional Time for Q&A