The federal government lowered the rates used by employers to calculate how much to add to the taxable wages of employees who use a corporate jet for non-business use, for the first half of 2015. The rates — known as the standard industry fare level, or SIFL rates — get an inflation adjustment every six months by the U.S. Department of Transportation’s Office of Aviation Analysis. The DOT office released the latest rates on Feb. 10.
The table below shows the new rates for fights taken between Jan. 1, 2015, and June 30, 2015, as compared to the rates that were in effect for the second half of 2014.
|
SIFL Rates for First Half of 2015 |
|
| Trips up to 500 miles | $0.2490 per mile (down from 0.2530) |
| Between 501 and 1,500 miles | $0.1898 per mile (down from 0.1929) |
| Exceeding 1,500 miles | $0.1825 per mile (down from 0.1855) |
The terminal charge for the first half of 2015 also dropped. It will be $45.52, down from $46.25 in the last half of 2014.
The IRS has not yet issued guidance on the rates, but generally does so after the DOT publishes its new rates for each period. Employers may rely on the new rates issued by the DOT until the IRS issues its formal guidance.
About the SIFL Rates
Employers must keep records showing the purpose of each one-way flight, each passenger’s identity and the number of passengers and seats on company aircraft in order to substantiate business flights and properly value personal flights.
While the DOT calculates the rates, adjusting them twice per year to reflect current market conditions, the IRS normally releases a revenue ruling instructing taxpayers on how to use the SIFL rates for tax purposes.
The SIFL rates reflect a mix of cost components, divided into fuel and non-fuel costs. (For more on how to use the SIFL rates, see ¶913 of the Guide.)