IRS Adjusts Employer-Provided Vehicle Maximums for 2017

The Internal Revenue Service has issued a notice describing the maximum vehicle values for 2017 that taxpayers need for determining the value of personal use of employer-provided vehicles under the Income Tax Regulations’ special valuation rules. 

Notice 2017-03 applies to employer-provided passenger automobiles first made available to employees for personal use in calendar year 2017 under section 1.61–21 (d) and (e) of the Income Tax Regulations. 

The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017 for which the vehicle cents-per-mile valuation rule could apply is $15,900 for a passenger automobile and $17,800 for a truck or van. 

The maximum value for which the fleet-average valuation rule may be applicable is $21,100 for a passenger automobile, and $23,300 for a truck or van.

(Source: AccountingToday - IRS Watch - January 11, 2017)