IRS Publishes Rates and Terminal Charge for Noncommercial Flights
Rev. Rul. 2013-20; 2013-40 I.R.B. 272
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2013-22900
- Tax Analysts Electronic Citation2013 TNT 189-18
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 61. -- Gross Income Defined
26 CFR 1.61-21: Taxation of fringe benefits.
Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the second half of 2013 are set forth.
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 charge and SIFL mileage rates:
Period During Which Terminal SIFL Mileage
the Flight Is Taken Charge Rates
_____________________________________________________________________
7/1/13 - 12/31/13 $48.53 Up to 500 miles
= $.2654 per mile
501-1500 miles
= $.2024 per mile
Over 1500 miles
= $.1946 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/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 2013-22900
- Tax Analysts Electronic Citation2013 TNT 189-18