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 button to view the Employee Commuting – Business or Personal tax flowchart.

Footnotes

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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