SUV cost rises for standard mileage valuation method

by on
in Office Management,Payroll Management

Employers that use the standard mileage rate (56 cents a mile in 2014) to value employees’ personal use of company vehicles are restricted to supplying vehicles of modest value. For company cars first made available to employees in 2014 and that qualify for the standard mileage rate valuation method, the fair-market value remains $16,000.

The value of company SUVs is $17,300, up $300. For pricier vehicles, you must use the lease valuation method or the general valuation method to value employees’ personal use of company vehicles. (Notice 2014-11, IRB 2014-13)

Leave a Comment