If your department uses the cents-per-mile value rule for employees’ personal use of company-provided vehicles, you’ll want to note this major change.

IRS just issued Announcements 2008-15 and 2008-9 to adjust those numbers. You’ll need to update your files to reflect the changes:

• Passenger automobiles have a maximum value of $15,000, and
• Trucks or vans are capped at $15,900.

Also of note: Under the fleet-average valuation rule, a company’s fleet of 20 or more vehicles can get a little more bang for their buck. Passenger automobiles have a maximum value of $19,900, while trucks or vans max out at $20,800 each.

Previously, IRS Rev. Procedure 2008-13, 2008-6 incorrectly set the cutoff limit for using cents-per-mile value rule at:

• Passenger automobile — $15,400, and
• Truck or van — $16,700.

For an employer to determine the value of a company car given to an employee for personal use, the vehicle’s fair market value (FMV) needed to be under this threshold to use the cents-per-mile method.

Tags: Company cars, IRS, Mileage, Valuation