Take note: If you have employees who sometimes use company vehicles for personal use, you’ll need to know the new thresholds that apply. As you know, whenever an employer-provided vehicle is used for personal reasons by an employee, you need to include the value of the use in the employee’s income.

You can use the cents-per-mile rule for any vehicles that meet the requirements of Sec. 1.61-21(e)(1).

But, the cents-per-mile rules don’t apply if the vehicle’s value exceeds these new dollar limits:

• $15,000 for a passenger vehicle other than a truck or van
• $15,200 for passenger trucks or vans.

If your company has a fleet of 20 or more vehicles  you may be able to use the fleet-average valuation rule instead.

For all the details, check out IRS’ Revenue Procedure 2009-12.

Tags: Fringe benefits, IRS, Payroll, Resource