Rev. Rul. 2005-14
2005-12 I.R.B. 749
FRINGE BENEFITS AIRCRAFT VALUATION FORMULA.Office of Division Counsel/Associate Chief Counsel(Tax Exempt and Government Entities)
Published: March 21, 2005
Fringe benefits aircraft valuation formula. The Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the first half of 2005 are set forth for purposes of determining the value of noncommercial flights on employer-provided aircraft under section1.61-21(g) of the regulations.
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 the Flight Is Taken Charge SIFL Mileage Rates Up to 500 miles =
1/1/05 — 6/30/05 $35.49 $. 1942 per mile
501-1500 miles = $.1480 per mile
Over 1500 miles = $.1423 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).