Rev. Rul. 90-4, 1990-1 C.B. 13, 1990-5 I.R.B. 5.
Internal Revenue Service
Revenue Ruling
FRINGE BENEFITS; AIRCRAFT VALUATION FORMULA
Published: January 10, 1990
Section 61. - Gross Income Defined, 26 CFR 1.61-21: Taxation of fringe benefits.
Fringe benefits; aircraft valuation formula. For purposes of section 1.61- 21(g) of the
regulations, relating to the rule for valuing noncommercial flights on employer-provided
aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and the terminal
charges in effect for 1989 are set forth. Rev. Rul. 88-71 modified.
For purposes of the taxation of fringe benefits under section 61 of the Internal Revenue Code, section 1.61-21(g) of the Income Tax Regulations provides a rule for valuing noncommercial flights on employer-provided aircraft. Section 1.61-21(g)(5) of the regulations sets forth an aircraft valuation formula to determine the value of such flights. The value of a flight is determined under the base aircraft valuation formula (also known as the Standard Industry Fare Level formula or SIFL) by multiplying the SIFL cents- per-mile rates applicable for the period during which the flight was taken by the appropriate aircraft multiple provided in section 1.61-21(g)(7) and then adding the applicable terminal charge. The SIFL cents-per-mile rates in the formula and the terminal charge are calculated by the Department of Transportation and are revised semi-annually.
| Period During Which the Flight Was Taken | Terminal Charge |
SIFL Mileage Rates |
| 1/1/89-6/30/89 | $26.48 | Up to 500 miles = $.1449 per mi 501-1500 miles = $.1105 per mi Over 1500 miles = $.1062 per mi |
| 7/1/89-12/31/89 | $28.40 | Up to 500 miles = $.1553 per mi 501-1500 miles = $.1184 per mi Over 1500 miles = $.1139 per mi |
Rev. Rul. 90-4, 1990-1 C.B. 13, 1990-5 I.R.B. 5.