The Internal Revenue Service has issued a notice setting the inflation-adjusted maximum value of a vehicle provided by an employer to an employee for personal use at a maximum of $50,400 for tax purposes.
Sections 1.61-21(d) and (e) of the Income Tax Regulations provide special valuation rules that employers can use when they’re determining the amount to include in employee income for personal use of employer-provided vehicles. However, the IRS pointed out that employers can only use the rules for vehicles with fair market values that don’t exceed a maximum value that’s adjusted for inflation every year under section 280F.
This year’s notice says the maximum value of an employer-provided vehicle (including cars, vans and trucks) first made available to employees for personal use in calendar year 2019 for which the vehicle cents-per-mile valuation rule provided under Treas. Reg. § 1.61-21(e) may be applicable is $50,400. In addition, the maximum value of an employer-provided automobile (including vans and trucks) first made available to employees for personal use in calendar year 2019 for which the fleet-average valuation rule provided under Treas. Reg. § 1.61-21(d)(5)(v) may be applicable is the same amount: $50,400.
