IRS Publishes Rates and Terminal Charge for Noncommercial Flights
Rev. Rul. 2014-10; 2014-14 I.R.B. 906
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2014-7442
- Tax Analysts Electronic Citation2014 TNT 61-21
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.
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
the Flight Is Taken Charge SIFL Mileage Rates
_____________________________________________________________________________
1/1/14-6/30/14 $45.98 Up to 500 miles = $.2515 per mile
501-1500 miles = $.1918 per mile
Over 1500 miles = $.1844 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) 317-6798 (not a toll-free number).
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2014-7442
- Tax Analysts Electronic Citation2014 TNT 61-21