SIFL rates are important numbers used to calculate the taxable income you receive when taking a personal flight on employer provided aircraft as a fringe benefit. The U.S. Department of Transportation recently released new SIFL rates for the 1st half of 2013 and there was an increase of 3.33% overall. This marks the fourth consecutive term that SIFL rates have significantly increased, with a total hike of over 17% since July of 2011. The following table shows these new numbers:
SIFL Rates for 1st Half of 2013
|Time Period of Flight||01/01/2013 – 06/30/2013|
|Miles: 0 – 500 –>||.2655|
|Miles: 501 – 1500 –>||.2024|
|Miles: > 1500 –>||.1946|
|Terminal Charge –>||$48.54|
|< 6,000 lbs.||62.5%||15.6%|
|6,001 – 10,000 lbs.||125%||23.4%|
|10,001 – 25,000 lbs.||300%||31.3%|
|> 25, 000 lbs.||400%||31.3%|
Crunching these numbers, a control employee would have a $598.59 taxable fringe benefit for a 750-mile flight, a 3.23% increase from the prior term.
If you’re unfamiliar with SIFL rates and whether they may apply to you, please read my earlier blog post. http://goo.gl/Bfmx6
– Ari Good
Ari Good, JD LL.M. is the Shareholder of Good Attorneys At Law, P.A. Mr. Good received his BA, With Distinction, from the University of Michigan in 1993, his law degree from the DePaul University College of Law in 1997, and his LL.M. (Masters of Law in Taxation) from the University of Florida. A long-time supporter of the general aviation community, Mr. Good serves aircraft buyers, sellers, dealers, brokers, flight schools and commercial operators worldwide in contractual, operational and tax matters. The firm’s services include federal income tax, state sales and use tax and excise tax planning, and defending both state and federal tax audits. Mr. Good is a frequent speaker in aviation tax law and a proud member of The Florida Aviation Trades Association and NBAA.