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IRS PUBLISHES RATES FOR VALUING FLIGHTS ON EMPLOYER AIRCRAFT.

DEC. 9, 1996

Rev. Rul. 96-58; 1996-2 C.B. 6

DATED DEC. 9, 1996
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    gross income, compensation
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 96-31677 (2 original pages)
  • Tax Analysts Electronic Citation
    96 TNT 238-10
Citations: Rev. Rul. 96-58; 1996-2 C.B. 6

Rev. Rul. 96-58

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

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

 _____________________________________________________________________

 

 

 Period During Which the

 

 Flight Was Taken         Terminal Charge     SIFL Mileage Rates

 

 _____________________________________________________________________

 

 

 7/1/96-12/31/96               $31.61          Up to 500 miles =

 

                                               $.1729 per mile

 

 

                                               501-1500 miles = $.1318

 

                                               per mile

 

 

                                               Over 1500 miles =

 

                                               $.1267 per mile

 

 _____________________________________________________________________

 

 

DRAFTING INFORMATION

[3] The principal author of this revenue ruling is Felicia A. Daniels of the Office of the Associate Chief Counsel (Employee Benefits and Exempt Organizations). For further information regarding this revenue ruling contact Ms. Daniels on (202) 622-6050 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    gross income, compensation
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 96-31677 (2 original pages)
  • Tax Analysts Electronic Citation
    96 TNT 238-10
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