A similar issue sometimes arises when a plane is sold in a state other than the owner’s resident state. Depending on applicable law, a state may take the position that the sale should be subject to state tax where the closing takes place, rather than the state in which the property was used (since, unlike most property – airplanes easily move from state to state). This issue can be easily avoided – so long as the sale has not already taken place.
Plane ownership frequently results in losses for tax purposes. This is due to a number of factors: high costs of maintenance, fuel, and pilots, accelerated depreciation and inconsistent usage. However, the ability to take losses relating to the lease of tangible personal property is not assured, even with a strong fact pattern. Accordingly, much of our work involves navigating through the passive loss rules to allow client to take a defensible position to treat losses as active losses (which often runs contrary to advice from any attorney concerned with personal or corporate liability). Other issues arise in using passive losses upon disposition of an airplane, if the new plane will be purchased to engage in the same activity.
Whether the use of an airplane is a business or personal expense is a particular favorite of the IRS. This common audit issue requires substantial compliance by the taxpayer in keeping appropriate logs, evidencing business purpose of each trip and avoiding intermingling business and personal affairs.
The IRS is currently aggressively imposing excise tax for any chartering/leasing arrangement that may impact existing leasing arrangements (as well as new transactions) based on recently issued guidance. With a tax rate of 7.5% of the transportation or fuel costs, careful planning is required to mitigate tax liability.
Every CEO I have ever represented cares very deeply about two things: not paying more taxes than required and avoiding unnecessary aggravation. Careful planning for airplane transactions will allow both of these goals to be accomplished.
David Rosen ([email protected]) is a CPA and tax attorney for Rosen, Sapperstein & Friedlander. RS&F is a business consulting and accounting firm based in Owings Mills, MD that serves middle market and high-net worth individuals throughout the mid-Atlantic and across the country.
Read: https://www.conklindd.com/Page.aspx?cid=1302
Read: https://www.wca-intl.org/articles/Buying%20and%20Flying%20WCA%2008-15-12%20mmwdls-tdh.pdf
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
