Aircraft Club August 2024: SIFL rates for the second half of 2024

In brief

What happened?  

This month, the Department of Transportation (DOT) released the cents-per-mile rates and terminal charge for the second half of 2024 for the Standard Industry Fare Level (SIFL) fringe benefits rules.

Why is it relevant?

Taxable fringe benefits include the use of company-provided private aircraft by employees for personal reasons. Employers can determine the value of the flights included in the income of employees by either using (1) the general fair market value charter rate of a similar aircraft or (2) the special valuation rules known as SIFL.

Action to consider

The SIFL rates for the second half of 2024 are effective for personal flights taken by employees on employer-provided aircraft between July 1, 2024, and December 31, 2024. Affected employers should review aircraft flight logs to determine which flights taken during that period were personal in nature to calculate and report the appropriate taxable fringe benefit amount to employees.