NBAA Tax Seminar To Tackle Key Bizav IRS Issues

On May 2, NBAA is holding its one-day Business Aviation Tax Seminar at the Hilton San Francisco Financial District. The seminar begins at 8 a.m. Among the subjects to be covered are two key tax issues for business aircraft operators: the application of the federal excise tax (FET) to managed aircraft flying under Part 91; and “Federal Audit Traps and Solutions for Aircraft Leasing Structures.”

The FET session will explore what operators can do to mitigate Internal Revenue Service (IRS) audits for FET assessed on fees paid to management companies, according to NBAA senior manager for finance and tax policy Scott O’Brien. The leasing structures session will address how operators can ensure they meet IRS requirements so as to avoid limits on depreciation deductions, including “strategies for arguing that business aircraft are ‘ordinary and necessary’ expenses under [Internal Revenue Code] section 162.”

Other sessions will cover state tax issues (primarily California), best practices for managing non-business use of aircraft and case studies of “flights that often fall into the ‘gray area’ between business and non-business use.”