Program Schedule – 2024 NBAA Business Aviation Taxes Seminar

5:30-7:00 p.m.

Networking Reception

The Governor’s Ballroom (19th Floor)

7:30 a.m. – 5:00 p.m.

Registration

7:30 a.m. – 8:30 a.m.

Continental Breakfast

8:30 a.m. – 9:05 a.m.

Welcome & Advocacy Update

9:05 a.m. – 9:55 a.m.

Regulatory and Tax Planning Considerations

Letisha Bivins, GKG Law
David Norton, Shackelford, Bowen, McKinley & Norton, LLP

This session will set the table for the seminar, providing high level structuring issues from an FAA regulatory and general risk-management perspective that must be taken into account when discussing the ownership and operation of aircraft, together with an introduction to various tax issues that also need to be considered and that will be discussed in more detail during the rest of the presentations.

9:55 a.m. – 10:45 a.m.

Personal Use, Aircraft Sharing and Carriage of Political Candidates

David Hernandez, Vedder Price PC
Ellen Urell, Walgreens Boots Alliance

Personal use of aircraft and aircraft sharing is complex and governed by several FAA and IRS regulations. This panel will discuss the primary FAA and IRS regulations and concerns that aircraft operators must consider for all aircraft personal use and sharing. Also, given that this is an election year, many flight departments will likely be flying candidates in elections. Such flights involve a complex intersection of FAA, FEC, tax, gift and ethics rules, alongside federal and state/local regulations. This panel will discuss the treatment of carriage of political candidates as well as the repercussions of failing to comply with the relevant requirements.

10:45 a.m. – 11:10 a.m.

Morning Break

11:10 a.m – 12:00 p.m.

Aircraft Depreciation

Robert Davis, FORVIS LLP
David Shannon, Lewis Brisbois Bisgaard & Smith LLP

In this session, the attendee will be updated on the state of current legislation pending in Congress regarding depreciation. The remaining time of this working session will be devoted to a number of topics that appear frequently on the radar of tax practitioners having to do with depreciable lives when the predominant use of the aircraft changes from Part 91 to Part 135 or vice versa, straight-line and accelerated depreciation methodologies and how they interplay with the listed property rules, how to compute the gain or loss on aircraft sales that have had a portion of their depreciation disallowed due to entertainment use, amongst other items.

12:00 p.m. – 1:10 p.m.

Lunch

1:10 p.m. – 2:00 p.m.

Other Tax Considerations Overlooked by Aircraft Owners

Angel Houck, Houck & Christensen CPAs, LLC
Joe Park, BIZJETCPA

While acquisition of aircraft discussions often focuses on ownership structuring and qualifying for bonus depreciation, other significant considerations exist that must be thought through in order for the tax benefit to be realized. Issues such as at-risk & basis under S-Corporation structures when financing the acquisition can lead to situations where the tax benefit of bonus depreciation cannot be claimed. Ownership structures that comply with FAA regulations may create passive activities whereby the loss created by depreciation cannot offset the business income as expected. The loss that flows through the business entity from depreciation could be subject to the restrictions under the Excess Business Loss Limitation or the Business Interest Limitation may restrict the extent of interest expense deductible for tax planning purposes. These items present considerations that cannot be overlooked during the pre-acquisition tax planning process and this presentation intends to highlight these items for the aircraft owner and their representatives.

2:00 p.m. – 2:50 p.m.

Federal Excise Taxes Applicability and SAF Tax Credits

Ryan DeMoor, MySky US Inc.
Melissa Stanley, Barbera & Watkins, LLC

The panelists will discuss what payments are subject to Federal Excise Taxes (FET), including requirements for the collection of FET on payments for aircraft management services and when charter brokers are involved. Current fuel taxes will also be discussed in the session, along with a brief explanation on what SAF is, how it is changing the industry and how it is being taxed.

2:50 p.m. – 3:15 p.m.

Afternoon Break

3:15 p.m. – 4:05 p.m.

State Tax Planning for Aircraft Owners

Sue Folkringa, Wolcott & Associates, P.A.
Nel Stubbs, JSSI | Conklin & de Decker
Chris Younger, HCH Legal, LLC

When purchasing an aircraft, one of the first issues to consider is where might buyers be liable for aircraft related sales or use tax and personal property tax. After an aircraft has been delivered and placed into service, it’s often too late to undo choices that have been made, whether or not they were intentional, that could create unintended liability for such taxes. This panel will discuss state tax planning issues surrounding the purchase, operation and storage of aircraft, highlighting key decisions that need to be made beforehand.

4:05 p.m. – 4:55 p.m.

Corporate Transparency Act Impact on Aviation

Katie DeLuca, Harper Meyer
Lori McGee, Jetstream Aviation Law, P.A.

The Corporate Transparency Act (CTA) imposes unprecedented disclosure requirements upon a broad range of entities formed in, or qualified to do business in, the United States. As of January 1, 2024, “reporting companies” under the CTA must report, among other things, beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. As title to, or beneficial ownership of, aircraft is often held by entities, CTA filing requirements must be considered in connection with every aircraft transaction as well as every existing aircraft ownership structure. This session will explore CTA reporting requirements, exceptions and other potential areas of concern for aircraft owners and their advisors.

4:55 p.m. – 5:00 p.m.

Wrap-Up