Tax Knowledge Is Power: How to Plan, Comply and Preserve Value

CONFERENCE DESCRIPTIONAttend the NBAA Business Aviation Taxes Seminar in Washington, DC on May 3, 2013 to learn about the latest tax and legal developments impacting business aviation.

This event is recognized across the industry as a must-attend seminar for anyone looking for an in-depth understanding of key tax, legal and regulatory issues for business aviation. The seminar will review the regulatory environment in which business aircraft operate to provide a foundation for an intermediate to advanced discussion of current tax topics.

WHO SHOULD ATTENDAnyone involved with the management of tax, accounting and legal topics associated with business aircraft, including: attorneys, accountants, tax advisors, aviation professionals, flight department personnel, aircraft owners/operators, and others. Both Members and non-Members of NBAA are welcome.

LEARNING OBJECTIVESAttendees of this NBAA Business Aviation Taxes Seminar will learn how to:

• Evaluate the differences between Parts 91 and 135 of the Federal Aviation Regulations (FARs) as they pertain to acceptable reimbursement for flights and effective tax planning.

• Differentiate between trade or business expenses, expenses for the production of income, and hobby expenses, and when each is deductible.

• Differentiate between “passive loss” and “at risk rules” and understand how they apply.

• Utilize common state sales and use tax exemptions applicable to business aircraft.

• Respond to recent scrutiny by state taxing authorities on leasing companies which are commonly used for tax planning purposes.

• Calculate any potential entertainment use disallowance resulting from non-business use of an aircraft and understand the IRS final regulations on this topic.

• Determine if there are opportunities to utilize bonus depreciation in 2013 and 2014.

• Evaluate aircraft management structures in light of IRS Chief Counsel Advice issued in 2012 and the resulting increase in FET audits.

• And more!

AGENDAFRIDAY, MAY 3, 2013

8:00 a.m. – 8:05 a.m. Welcome and Introduction Cliff Maine, Barnes & Thornburg, LLP | Sean Fitzgibbons, Wal-Mart Corporation

8:05 a.m. – 8:45 a.m. The Critical Few: 91 vs. 135, Leases, and the “Flight Department Company”

Gary Garofalo, Garofalo Goerlich Hainbach PC | Jeff Wieand, Boston Jet Search

• Review of key differences between Parts 91 and 135 of the FARs.

• When is it permissible to receive reimbursement for flights conducted under Part 91?

• What is the “flight department company trap” and why does it pose problems under Part 91?

• What are the differences between a “wet” and “dry” lease?

8:45 a.m. – 10:00 a.m. Maximizing Business Deductions while Avoiding Trouble

Keith Swirsky, GKG Law, P.C.

• Distinguish between trade or business expenses, expenses for the production of income, and hobby expenses, and learn when is each deductible.

• When are aircraft expenses considered non-deductible entertainment, recreation or amusement expenses?

• What is the “Leasing Company Trap” and how can you avoid falling into it?

• What are the “Passive Loss” and “At Risk” rules, and when are they relevant?

10:00 a.m. – 10:30 a.m. Morning Break

10:30 a.m. – 11:30 a.m. State Tax Considerations for Structuring Aircraft Ownership and Operation

Michael Cosby, Husch Blackwell LLP | Phil Crowther, Jackson & Wade, L.L.C.

• Learn about common state sales and use tax exemptions applicable to aircraft and how to utilize the NBAA State Aviation Tax Report.

• What are state tax limitations on application of use tax to aircraft not “purchased for use” in the state?

• Review federal constitutional limitations on taxation of non-resident aircraft.

• What is the impact of recent attacks by state taxation authorities on leasing companies?

11:30 a.m. – 12:00 p.m. Planning Your Approach: Balancing Tax Goals with FAA Regulations

Joanne Barbera, Barbera & Watkins, LLC

• Spot problems and create solutions for single purpose entity structures.

• Identify advantages and avoid pitfalls of aircraft leasing structures.

• Explore aircraft management company arrangements.12:00 p.m. – 1:15 p.m. Lunch Lunch is included in the registration fee.

1:15 p.m. – 2:15 p.m. Compliance Strategies: Personal and Entertainment Use Flights

Jed Wolcott, Wolcott & Associates, P.A., CPAs

• What has changed now that IRS has issued final regulations on the entertainment use cost disallowance?

• Learn how to use the seat-mile, seat hour, and flight-by-flight reporting rules to comply with reporting requirements for non-business flights.

• Develop planning strategies to minimize the tax consequence of the final entertainment use regulations.

• Review IRS documentation standards and learn how to maintain required information in case of an audit.

2:15 p.m. – 3:00 p.m. An Emerging Tax: The European Union Emissions Trading Scheme

Martina Becher, TAG Aviation

• How does the European Union “stop the clock” announcement and EU ETS prohibition act impact compliance responsibilities for operators?

• What will the process of trading actual emissions credits look like?

• Are there estimates on what the EU ETS will actually cost flight departments?

• Is progress being made at ICAO to develop a global plan to curb greenhouse gas emissions?

3:00 p.m. – 3:30 p.m. Afternoon Break

3:30 p.m. – 4:10 p.m. Bonus Depreciation: Potential Opportunities in 2013 and 2014?

• Details on potential bonus depreciation opportunities in 2013 and 2014.

• Review general requirements for bonus depreciation.

• Learn about recent IRS tax court and audit cases in the area of bonus depreciation.

• Review 50% and 100% bonus depreciation opportunities for 2013 and 2014.

4:10 p.m. – 5:20 p.m. Understanding Federal Excise Tax Exposure for Management Companies

Eileen Gleimer, Crowell & Moring, LLP | John Hoover, Dow Lohnes

• Explanation of potential FET liabilities arising from the use of aircraft management companies.

• Potential structuring arrangements to minimize possible excise tax risk.

• Update on IRS excise tax audits after Chief Counsel Advice 2012-10026.

• Status of NBAA efforts to protest the Chief Counsel Advice and seek improved guidance from IRS.

5:20 p.m. – 5:30 p.m. Closing Remarks

DEDICATED TO HELPING BUSINESS ACHIEVE ITS HIGHEST GOALS.

REGISTRATION IS NOW OPEN!

www.nbaa.org/tax-seminar/2013

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REGISTER BY APRIL 19 FOR THE EARLY BIRD DISCOUNTED RATE OF $695!Includes NBAA Member discount of $300

Registration is available online: www.nbaa.org/tax-seminar/2013

CONFERENCE LOCATION AND HOTEL INFORMATIONMarriott Metro Center775 12th Street, NWWashington, DC 20005Room Rate: $249.00Cut Off Date: April 11, 2013Reservations by Phone: 1-800-228-9290 or (202) 737-2200

CPE CREDITAttending this NBAA Business Aviation Taxes Seminar provides a maximum of 8.5 hours of recommended continuing education (CPE) credits. In accordance with the standards of the National Registry of CPE Sponsors, CPE credits have been granted based on a 50-minute hour.

NBAA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors

may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org.

Course Level: Introductory Prerequisite: None Preparation: None required Delivery Method: Group-Live Level of Knowledge: Overview Maximum CPE Credit: 8.5 Fields of Study: Taxes (6.5 hours maximum CPE recommended)

Business Law (2.0 hours maximum CPE recommended)

CPE Complaint Resolution Policy: For more information regarding administrative policies such as complaint and refund, contact the National Business Aviation association at (202) 783-9000.

CLE CREDITNBAA has not submitted this Seminar for CLE approval to any state provider. Upon request, NBAA will provide attorneys with an attendance confirmation letter to support their application for CLE credit. Based on a 50-minute hour, this Seminar may be eligible for up to 8.5 CLE credits.

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