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DOT Revised the Standard Industry Fare Level (SIFL) for Last Six Months of 2010

Alert
8.20.10

The U.S. Department of Transportation recently revised the SIFL rates for the six month period July 1, 2010 through December 31, 2010. The SIFL rates for the last 6 months of 2010 are:

Mileage Range

Amount per Mile

0 – 500 miles

$0.2243

501 – 1,500 miles

$0.1710

Over 1,500 miles

$0.1644

Terminal Charge

$41.00

SIFL rates are used to value an employee's personal use of a company aircraft, as required by the Internal Revenue Code Section 61 and the Federal Tax Regulations Section 1.61-21(g).

Each use of an employer-provided aircraft by an employee is potentially taxable to the employee. These rules also apply when guests or family members of an employee are provided use of an employer-provided aircraft. Also, the classification by the IRS of some personal use flights as recreational, amusement or entertainment, causing the company to lose the company's business deductions for such flights, does not eliminate the requirement to allocate the value of the personal use flights to the individual receiving the benefit of such flights.

Contact Info

For more information regarding the SIFL rates, assistance with calculating the value of an employer-provided flight or other aviation related tax issue, please contact one of the following attorneys in the Husch Blackwell Sanders Aviation Practice Group:

Springfield
David Agee - 417.268.4066
Michael Cosby - 417.268.4110

Kansas City
Jason Reschly - 816.983.8170

Memphis
Bert Wolf - 901.888.4012


IRS Required Statement
Pursuant to recently-promulgated U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly stated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and can not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

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