Auto - Employer-Provided Annual Lease Value Method Worksheet

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This tax worksheet calculates the amount to include in an employee’s compensation due to the personal use of an employer-provided vehicle, using the annual lease value method.

For further assistance on this topic, click the Tax Flowcharts item group Tax worksheets item group button button to view the Employee Commuting – Business or Personal tax flowchart.


  1. Taxpayers who do not adopt the special accounting period must measure mileage for the calendar year (i.e., January-December). IRS Annual 85-113 allows employers to adopt any 12-month period that ends between October 31 and December 31.
  2. Company-provided fuel computed at 5.5 cents per mile; an employer can choose to use FMV instead.
  3. FMV is re-determined at January 1 (or the beginning of the special accounting period) of the fifth calendar tax year based on the FMV at that time. FMV may be re-determined on January 1 of the year of transfer (or the beginning of the special accounting period) if the vehicle is transferred to another employee.

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