On January 12, 2015, the IRS announced the maximum values of employer-provided vehicles for personal use by employees. These values are used to determine amounts included in an employee’s taxable income.
Cents-Per-Mile Valuation Rule
The maximum value of vehicles for which the cents-per-mile valuation rule of Regulation Section 1.61-21(e) applies is as follows:
| 2014 | 2015 | |
| Passenger Automobile | $16,000 | $16,000 |
| Truck or Van | $17,300 | $17,500 |
Fleet-Average Valuation Rule
The maximum value for vehicles for which the fleet-average valuation rule of Regulation Section 1.61-21(d) applies is as follows:
| 2014 | 2015 | |
| Passenger Automobile | $21,300 | $21,300 |
| Truck or Van | $22,600 | $22,900 |
The cents-per-mile and fleet-average valuation rules are optional methods for determining the value of an employee’s personal use of an employer-provided vehicle. It is important to note that these rules can only be used if the vehicle’s fair market value does not exceed the dollar limits shown. To learn more, please see Notice 2015-1.