From: lawrence delson To: "jeevacation®gmail.com" <jeevacation®gmail.com> Subject: Fw: Aircraft guidance for your files Date: Sat, 07 Jun 2014 13:57:49 +0000 Attachments: NicholsReimbursementFAA20110110-schwab-interp.pdf; AircraftNBAA280F.docx; Hobby_Loss20111128-moron-hobby-loss.pdf; AirplaneCCA_201210026Section4261.doc Inline-Images: image001.gif Jeffrey Thought you might like to review. Interesting that the hobby loss exposure may be less than I would have thought. Larry Delson Delson International, Inc. •. BOX 3776 New Yi rk NY 1 t 1 Ort\ a e. From: "Wiener. Ruth" To: Cc:" Sent: Friday, June 6, 2014 4:51 PM Subject: Aircraft guidance for your files Gentlemen: It was a pleasure meeting with you and discussing aircraft ownership and use structuring. In the quest to shorten the analysis of the myriad issues to get to the best economic end result, I have attached some guidance for you. I will send you a couple key cases separately, including the Noyce case. • FAA: Nichols Reimbursement letter allows executive to reimburse under a Part 91 without a timeshare and in a greater amount than timeshare allows • Section 280F write up: Relevant only to determine which depreciation schedule to be on, and must be "passed" to get bonus depreciation. Does not determine how much of the purchase cost is put on to that schedule —from zero to 100% of the aircraft cost is put on the applicable schedule dependent upon how much is used in a trade or business (compensatory use counts for that purpose) • Nice article on the Hobby Loss issue by a fellow member of the tax committee of the NBAA, discussing Morton ability to aggregate business for that purpose • Section 4261 excise tax IRS guidance where the IRS attempts to apply the 7.5% tax on the management fees, calling it a "charter" Ruth M. Wlmer Partner StMcDermott Will & Emery McDermott will & Emery LIP I The McDermott Building 1500 NorthCapitol Streets Washington, DC 20001 EFTA01190139 Biography i Website I yfard I E-mail I Twitter i Linkedln i Blog IRS Circular 230 Disclosure: To comply with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained herein (including any attachments), unless specifically stated otherwise, is not intended or written to be used, and cannot be used, for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter herein. This message is a PRIVILEGED AND CONFIDENTIAL communication. This message and all attachments are a private communication sent by a law firm and may be confidential or protected by privilege. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of the information contained in or attached to this message is strictly prohibited. Please notify the sender of the delivery error by replying to this message, and then delete it from your system. Thank you. Please visit for more information about our Firm. McDermott Will&Emery EFTA01190140