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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 cents-per-mile method.

The following conditions apply:

• The cents-per-mile method is available only if the FMV of the vehicle is less than the federally inflation adjusted limit when first made available to any employee. See the worksheet notes for further details for limits in the applicable year.
• The automobile must be either (i) regularly used in the employer’s business, or (ii) driven at least 10,000 miles per year, primarily by employees.
• Once adopted, the method must continue to be used as long as the vehicle qualifies, except the commuting valuation rule can be used for any period if the automobile qualifies.

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

Footnote

1. Taxpayers who do not adopt the special accounting period must measure mileage for the calendar year (i.e., January - December). IRS Ann. 85-113 allows employers to adopt any 12-month period that ends between October 31 and December 31.

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