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IRS Publishes Rates And Terminal Charge For Noncommercial Flights.

SEP. 13, 2002

Rev. Rul. 2002-56; 2002-2 C.B. 526

DATED SEP. 13, 2002
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Citations: Rev. Rul. 2002-56; 2002-2 C.B. 526

[1] 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 terminal charge are calculated by the Department of Transportation and are reviewed semi-annually.

[2] The following chart sets forth the terminal charges and SIFL mileage rates:

      Period During Which        Terminal        SIFL Mileage

 

      the Flight Is Taken        Charge          Rates

 

 

      7/1/02 - 12/31/02          $38.02          Up to 500 miles

 

                                                 = $.2080 per mile

 

 

                                                 501-1500 miles

 

                                                 = $.1586 per mile

 

 

                                                 Over 1500 miles

 

                                                 = $.1524 per mile

 

Section 472. -- Last-in, First-out Inventories

 

 

26 CFR 1.472-1: Last-in, first-out Inventories

 

 

[3] LIFO; price indexes; department stores. The July 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first- out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 2002.
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