The IRS has issued the 2019 maximum vehicle valuation rules (cents-per-mile and fleet-average valuation methods) that may be used to determine the value of personal use of an employer-provided vehicle. The guidance also provides information about the way the IRS intends to publish the values in the future. In addition, the IRS provides temporary relief from the consistency requirements in the current IRS regulations for use with the vehicle cents-per-mile valuation rule and is allowing flexibility with respect to the rules relating to the period of use for the fleet-average valuation rule.
2019 maximum vehicle fair market values. The maximum value is $50,400 for: (1) an employer-provided vehicle (including cars, vans, and trucks) first made available to employees for personal use in 2019 for which the vehicle cents-per-mile valuation rule may apply; and (2) an employer-provided automobile (including vans and trucks) first made available to employees for personal 2019 for which the fleet-average valuation rule may apply.
2019 consistency and flexibility. The IRS intends to revise regulations for employers whose vehicles did not qualify for vehicle cents-per-mile valuation under the rules in effect before 2018 because the vehicle’s fair market value exceeded the maximum permitted. In such a case, the employer may first adopt the vehicle cents-per-mile valuation rule for the 2018 or 2019 tax year based on the higher maximum fair market value of a vehicle for 2018 or 2019, as applicable. The employer generally must continue to use the vehicle cents-per-mile valuation rule for all subsequent years in which the vehicle qualifies for the rule. However, the employer may use the commuting valuation rule for any year the vehicle qualifies for that rule.
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