Keeping CPAs Up to Date on Tax Matters

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IRS Sets Annual Limits On Value of Vehicles for Cents Per Mile and Fleet-Average Valuation Rule for 2017

January 07, 2017 by Ed Zollars, CPA

In Notice 2017-3 the IRS has set the maximum values for 2017 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 2017 is:

$15,900 for a passenger automobile
$17,800 for a truck or van.

The maximum value of vehicles for the fleet valuation rule for 2017 is:

$21,100 for a passenger vehicle
$23,300 for a truck or van.