The Internal Revenue Service has issued the maximum vehicle values for 2016 that taxpayers need to determine the value of personal use of employer-provided vehicles.
The vehicle value is used under the special valuation rules provided under section 1.61–21 (d) and (e) of the Income Tax Regulations, which apply to the taxation of fringe benefits. In
The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2016 for which the fleet-average valuation rule provided under section 1.61–21(d) may be applicable is $21,200 for a passenger automobile and $23,100 for a truck or van. That section of the regulations describes the valuation rule for automobile leases.
The notice applies to employer-provided passenger automobiles first made available to employees for personal use in calendar year 2016.
