Transcript:

SIFL stands for the Standard Industry Fare level, and it’s a multiplier that’s purchased by the IRS in order to help you value personal use of business aircraft. Personal use of business aircraft for non-entertainment purposes, or for entertainment purposes, is relatively common and has a tax consequence, the first of which, for most businesses, is making sure that additional income is imputed for the use of the aircraft onto the individual taxpayer that gets the benefit, just like any other benefit that an employee may receive that has added value to them. It’s a little mysterious in that it’s phantom income, that is, the number is not actually related to any of the expense or equal to the actual expense incurred.