4.1. ERMUSR 05-12-2009 - Laserfiche WebLink

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Daily Lease Value This method is required if the vehicle is available for less than 30 days. Figure the daily lease value by multiplying the annual lease value by a fraction, using four times the number of days of availability as the numerator, and 365 as the denominator. However, you can apply a prorated annual lease value for a period of continuous availability of less than 30 days by treating the automobile as if it had been available for 30 days. Use a prorated annual lease value if it would result in a lower valuation than applying the daily lease value to the shorter period of availability. Reg.. ,¢l. 61-21(d)(4) Fleet Average Value If the employer has 20 or more cars used for business and personal use by employees, a "fleet- average value" maybe used to calculate the annual lease valuation. For 2009, each vehicle must be valued at less than $19,900. (For trucks, the amount is also $19,900.) Reg. ,¢1.61-21(d)(5)(v); Rev. Proc. 2009-12 Vehicle Cents-Per-Mile Rule To use the vehicle cents-per-mile rule, the vehicle must meet one of the following tests: It is regularly used (50% or more each year) in the employer's business, or is Generally used each workday to transport at least three employees to and from work, in an employer sponsored commuting vehicle pool, or is Driven by employees at least 10,000 miles per year. Continued Usage Rule You must continue using the cents-per-mile rule for the vehicle unless the vehicle no longer meets the requirements, except that an employer may change to the commuting valuation rule. Limitation on Value For 2009, the cents-per-mile valuation rule cannot be used for cars with FMV exceeding $15,000 (2009) The amount for trucks is $15,200. Note: This amount is revised annually. Rev. Proc. 2009- 12; Rev. Reg. X1.61-21(e)(1); Reg. 1.280F Computation Multiply the standard mileage rate by number of personal miles driven. If fuel is not provided, the standard mileage rate can be reduced by up to 5.5 cents (55 cents - 5.5 cents = 49.5 cents in 2009). Reg. X1.61-21(e) 51