4.1. ERMUSR 05-12-2009 - Laserfiche WebLink

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which apse of the vehicle qualifies under the commut- ing rules. However, if the vehicle does nat qualify for the cents-per-mile rule during a later year, you can use for that year and thereafter any other rule for which the vehicle then qualifies. • You must continue to use the cents-per-mile rule if you provide a replacement vehicle to the employee (and the vehicle qualifies for the use of this rule} and your primary reason for the replacement is to reduce federa!I taxes. Items included in cents-per-mile rate. The cents-per-mile rate includes the value of maintenance and insurance for the vehicle. Do not reduce the rate by the value of any service included in the rate that you did not provide. You can take into account the services actually provided for the vehicle by using the General Valuation Rule, earlier. For miles driven in the United States, its territories and possessions, Canada, and Mexico, the cents-per-mile rate includes the value of fuel you provide. if you do not provide fuel, you can reduce the rate by no more than 5.5 cents. For special rules that apply to fuel you provide for miles driven outside the United States, Canada, and Mexico, see Regulations section 1.61-21(e)(3)(ii)(B). The value of any other service you provide for a vehicle is not included in the cents-per-mile rate. Use the general valuation rule to value these services. Commuting Rule Under this rule, you determine the value of a vehicle you provide to an employee for commuting use by multiplying each one-way commute (that is, from home to work or from work to home} by $1.50. If more than one employee com- mutes in the vehicle, this value applies to each employee. This amount must be included in the employee's wages or reimbursed by the employee. You can use the commuting rule if all the following requirements are met. You provide the vehicle to an employee for use in your trade or business and, for bona fide noncom- pensatory business reasons, you require the em- ployee to commute in the vehicle. You will be treated as if you had met this requirement if the vehicle is generally used each workday to carry at least three employees to and from work in an employer sponsored commuting pool. You establish a written policy under which you do not allow the employee to use the vehicle for per- sonal purposes other than for commuting or de minimis personal use (such as a stop for a personal errand on the way between a business delivery and the emplcyee's home}. Persona! use of a vehicle is all use that is not for your trade or business. • The employee does not use the vehicle for personal purposes other than commuting and de minimis personal use. • If this vehicle is an automobile (any four-wheeled vehicle; such as a car, pickup truck, or van}, the employee who uses it for commuting is not a contras employee. See Control employee below. Vehicle. For this rule, a vehicle is any motorized wheeled vehicle, including an automobile manufactured primarily for use on public streets, roads, and highways. Control employee. A control employee of a nongovern- ment employer for 2008 is generally any of the following employees. • Aboard or shareholder-appointed, confirmed, or elected officer whose pay is $90,000 or more. • A director. • An employee whose pay is $185,000 or more. • An employee who owns a 1 % or more equity, capi- tal, or profits interest in your business. A control employee for a government employer for 2008 is either of the following. • A government employee whose compensation is equal to or exceeds Federal Government Executive Level V. (See the Office of Personnel Management website at www.opm.gov/oca/payrates/index.asp for 2008 compensation information.} • An elected official. Highly compensated employee alternative. Instead of using the preceding definition, you can choose to define a control employee as any highly compensated employee. A highly compensated employee for 2008 is an employee who meets either of the following tests. 1. The employee was a 5% owner at any time during the year or the preceding year. 2. The employee received more than $100,000 in pay for the preceding year. You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Lease Value Rule Under this rule, you determine the value of an automobile you provide to an employee by using its annual lease value. For an automobile provided only part of the year, use either its prorated annual lease value or its daily lease value. If the automobile is used by the employee in your busi- ness, you generally reduce the lease value by the amount that is excluded from the employee's wages as a working condition benefit. However, you can choose to include the entire lease value in the employee's wages. See Vehicle allocation rules on page 18. Automobile. For this rule, an automobile is any four-wheeled vehicle (such as a car, pickup truck, or van} manufactured primarily for use on public streets, roads, and highways. Consistency requirements. If you use the lease value rule, the following requirements apply. Publication 15-13 (2008) Page 21