Due to increased physical and cybersecurity concerns, executives are increasingly provided travel on the company aircraft for both business and personal purposes. However, any non-business travel invokes Form W-2 income inclusion using the Standard Industry Fare Level (SIFL) rates published by the Department of Transportation twice per year, effective for a six-month period. The rates for the first half of 2024 have just been published:
|
FOR 6-MONTH TAX PERIOD EFFECTIVE |
TERMINAL |
0–500 |
501–1500 |
>1500 |
|
1/1/2024 |
$55.05 |
0.3012 |
0.2296 |
0.2208 |
These rates are slightly higher than the rates for 2023, shown here
for comparison purposes:
|
FOR 6-MONTH TAX PERIOD EFFECTIVE |
TERMINAL |
0–500 |
501–1500 |
>1500 |
|
1/1/2023 |
$52.35 |
0.2864 |
0.2183 |
0.2099 |
|
7/1/2023 |
$52.98 |
0.2898 |
0.2210 |
0.2124 |
As usual, note that the SIFL rates are relevant only for IRS income
inclusion purposes. Executives of public companies must have perks
such as travel on the corporate jet reported at the "Aggregate
Incremental Cost" of the personal benefit, including the cost
of fuel and maintenance costs, rather than the IRS imputed-income
number.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
