Keeping CPAs Up to Date on Tax Matters

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IRS Releases Maximum Values for Cents per Mile and Fleet-Average Valuation Rules for 2016

February 05, 2016 by Ed Zollars, CPA

In Notice 2016-12 the IRS has set the maximum values for 2016 for employer provided vehicles under which the cents per mile method (Reg. §1.61-21(e)) or fleet-average valuation rule (Reg. §1.61-21(d)) may apply.

The maximum value of vehicles for which the cents per mile method may be used for 2016 is:

$15,900 for a passenger automobile
$17,700 for a truck or van.

The maximum value of vehicles for the fleet valuation rule for 2015 is:

$21,200 for a passenger vehicle
$23,100 for a truck or van.