IRS Publishes Rates And Terminal Charge For Noncommercial Flights.
Rev. Rul. 2005-61; 2005-2 C.B. 538
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2005-19096
- Tax Analysts Electronic Citation2005 TNT 180-15
Rev. Rul. 2005-61
For purposes of the taxation of fringe benefits under section 61 of the Internal Revenue Code, section 1.61-21(g) of the Income Tax Regulations provides a rule for valuing noncommercial flights on employer-provided aircraft. Section 1.61-21(g)(5) provides an aircraft valuation formula to determine the value of such flights. The value of a flight is determined under the base aircraft valuation formula (also known as the Standard Industry Fare Level formula or SIFL) by multiplying the SIFL cents-per-mile rates applicable for the period during which the flight was taken by the appropriate aircraft multiple provided in section 1.61-21(g)(7) and then adding the applicable terminal charge. The SIFL cents-per-mile rates in the formula and the terminal charge are calculated by the Department of Transportation and are reviewed semi-annually.
The following chart sets forth the terminal charges and SIFL mileage rates:
Period During Which Terminal SIFL Mileage
the Flight Is Taken Charge Rates
7/1/05 - 12/31/05 $35.21 Up to 500 miles
= $.1926 per mile
501-1500 miles
= $.1468 per mile
Over 1500 miles
= $.1412 per mile
DRAFTING INFORMATION
The principal author of this revenue ruling is Kathleen Edmondson of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). For further information regarding this revenue ruling, contact Ms. Edmondson at (202) 622-0047 (not a toll-free call).
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2005-19096
- Tax Analysts Electronic Citation2005 TNT 180-15