SUV costs up $200 for standard mileage valuation method — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

SUV costs up $200 for standard mileage valuation method

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in Office Management,Payroll Management

Employers that use the standard mileage rate (57.5¢ a mile in 2015) to value employees’ personal use of company vehicles are restricted to supplying vehicles of modest value. The fair market value of company cars first made available to employees in 2015, which qualify for the standard mileage rate valuation method, remains $16,000. The value of company SUVs is $17,500, up $200.

For pricier vehicles, you must use the lease valuation method or the general valuation method to value employees’ personal use of company vehicles. (Notice 2015-1, IRB 2015-2)

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