Released Aug. 16, 2019
The U.S. Department of Transportation recently revised SIFL rates for the six-month period from July 1, 2019, to Dec. 31, 2019. These data are necessary when applying the IRS’s aircraft valuation formula to compute the value of non-business transportation aboard employer-provided aircraft as required by the Internal Revenue Service Rules Section 1.61-21(g).
SIFL rates for the six-month period from July 1, 2019, to Dec. 31, 2019, are:
|MILEAGE RANGE||AMOUNT PER MILE|
|0-500 miles||$ 0.2322|
|501-1,500 miles||$ 0.1771|
|over 1,500 miles||$ 0.1702|
Anytime an employee is flown on an employer-provided aircraft, the flight is potentially taxable to the employee. This also is true when a non-employee guest or family member of an employee (spouse or dependent child) is onboard.
The aircraft valuation formula applies on a per-flight, per-person basis. The definition of a flight, for the purposes of computing the value of personal transportation, is “the distance in statute miles from where the individual boards the aircraft to where the individual deplanes.”
An “aircraft multiple” is applied based on the maximum certified takeoff weight ( of the aircraft and whether the income is tobe imputed to a control or non-control employee. The aircraft multiples listed in Treas. Reg. § 1.61.21(g)(7) areas follows and do not change from year to year:
Takeoff Weight of
for a Control
for a Non-Control
|6,000 lbs. or less||62.5%||15.6%|
|25,000 lbs. or more||400%||31.3%|
This rule may be used to value flights on all employer-provided aircraft, including helicopters. In addition, the valuation rule may be used to value international flights as well as domestic flights.
For assistance in the calculation of non-business transportation aboard employer-provided aircraft for this SIFL period, NBAA provides a Personal Use Calculator.
As a result of the American Jobs Creation Act of 2004, some personal flights classified as for recreation, amusement or entertainment may cause the company to lose business deductions. That law, and the subsequent IRS Notice 2005-45, does not negate the need to impute the value of personal use flights to the individual through the SIFL method or the fair market value method. The NBAA Personal Use Web Resource has several articles available to explain the tax law change and IRS guidance.