Friday, May 30, 2008 •

Registration & Breakfast

Welcome & Introduction

Ed Kammerer, Edwards Angell Palmer & Dodge LLP

Federal Aviation Regulations

Eileen Gleimer, Crowell & Moring LLP
Jeff Wieand, Boston Jetsearch, Inc.

A basic understanding of key FAA regulatory issues is essential for tax advisors. This session will address permissible ownership structures and various operating and leasing options, such as timesharing, interchange, dry leasing, joint ownership and fractional ownership. Other topics include the dangers of a flight department company, an overview of charter regulations (FAR Part 135), including new developments concerning operational control, and how to use a management company and still be non-commercial for FAA and IRS purposes.

Federal Tax Hot Topics: FET and Bonus Depreciation

Keith Swirsky, Galland, Kharasch, Greenberg, Fellman & Swirsky, PC

A brief overview of current transportation and fuel excise taxes applicable to business aircraft operations and current excise tax issues facing the industry relating to treatment of single-member LLC's and S Corp's will be addressed. In addition, The Economic Stimulus Act of 2008 was signed into law on February 13, 2008, and provides a renewal of Bonus Depreciation. Surprisingly, the rules allow for Bonus Depreciation for contracts entered into prior to 2008, and covers aircraft delivered in both 2008 and 2009.  This presentation will cover key aspects of the rules and their practical application in typical transactions. (NOTE: A 50-minute audio podcast on Bonus Depreciation and Section 179 is available to NBAA Members today, at no cost, at: http://nbaa.impactlearning.org.)     

Morning Break

Charitable Flights & Flights for Candidates

Patty Turner, Pearl Professional Corporation
Stewart Pearl, Pearl Professional Corporation

Business aircraft are often used for charitable and political purposes. Learn the tax consequences of making an aircraft available for charity flights and the carriage of elected officials. There will be a brief discussion of rules for carriage of political candidates.

State Aviation Taxes

Jed Wolcott, Wolcott & Associates, CPA’s, P.A.

An introduction to state taxes on the purchase and operation of business aircraft, including an overview of strategies for dealing with aircraft to be based in the New York City area.

Lunch

Non-Business Use of Business Aircraft

Glenn Hediger, RSM McGladrey
John Hoover, Dow Lohnes PLLC
Ruth Wimer, Ernst & Young LLP

Personal use of an aircraft has always posed many challenges for tax practitioners regarding how to calculate income inclusion. More recently, The American Jobs Creation Act of 2004 and IRS proposed regulations issued last year impose significant limitations on the ability of companies to deduct aircraft expenses for tax purposes to the extent the aircraft is involved in “entertainment” personal use. Our panel of experts will provide an in-depth exploration of the new requirements and strategies for dealing with entertainment use, including the updates on a possible charter rate safe harbor. Other personal use issues such as the use of an aircraft as a retirement benefit and appropriate accounting treatment of personal use will also be discussed.

Hobby Loss

Ed Kammerer, Edwards Angell Palmer & Dodge LLP

Learn how to avoid running afoul of IRS “hobby loss” rules and preserve tax deductions for aircraft involved in small or start-up businesses.

Afternoon Break

Tax Aspects of Aircraft Leasing

Joanne Barbera, Barbera & Watkins LLC
Phil Crowther, Law Offices of Phil Crowther

Many business aircraft are involved in leases, sometimes unintentionally. Learn about sales and use tax planning strategies for leases, including the latest state law developments, the IRS pitfalls of leasing structures, such as passive activity losses, and how leases figure in aircraft charter management arrangements.

Audit Issues Panel

Moderator: Alan Goldstein, Citigroup Executive Services

Panelists: Joanne Barbera, Barbera & Watkins LLC
Glenn Hediger, RSM McGladrey
Ruth Wimer, Ernst & Young LLP

A discussion of key problem areas and solutions for business aviation tax audits.

Questions & Answers

All of the day’s presenters will be available to answer your questions on the topics addressed during the seminar, or related business aviation tax issues.