Tax Insight

Aircraft Quarterly Newsletter – Q1 2026

Insight
5 minute read
March 27, 2026

What happened?

There have been some recent developments affecting the use of corporate aircraft.

First, the IRS has updated Form 4562, Depreciation and Amortization, for 2025 by adding a new question 24C, under Part V, related to whether a taxpayer owned, leased or chartered an aircraft during 2025. Additionally, the Department of Transportation (DOT) released the cents-per-mile rates and terminal charge for the first half of 2026 for the Standard Industry Fare Level (SIFL) fringe benefits rules.

Why is it relevant?

Introduction of Line 24c on a Form 4562 generally will require taxpayers to affirmatively acknowledge the use of company aircraft, which may make it easier to focus examination efforts on companies with aircraft.

Second, when an employer allows an employee to use a company-provided private aircraft for personal reasons, a taxable fringe benefit has been extended to that employee. Under current law, the employer may choose to value these personal flights by either using (1) the general fair market value charter rate of a similar aircraft or (2) the special valuation rules known as SIFL.

Actions to consider

Companies that have company aircraft should review their utilization of aircraft and properly track business vs. personal use, including computations of qualified business use, personal entertainment deduction disallowance and taxable fringe benefits for personal use. The SIFL rates for the first half of 2026 are effective for personal flights taken by employees on employer-provided aircraft between January 1, 2026, and June 30, 2026. Affected employers should review the 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 its employees.