4.1. ERMUSR 05-12-2009 - Laserfiche WebLink

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that you did not provide. For example, do not reduce the annual lease value by the value of a maintenance service contract or insurance you did not provide. (You can take into account the services actually provided for the automo- bile by using the general valuation rule discussed earlier.) Ifems not included. The annual lease value does not include the value of fuel you provide to an employee for persona! use, regardless of whether you provide it, reim- burse its cost, or have it charged to you. You must include the value of the fuel separately in the emplayee's wages. You can value fuel you provided at FMV or at 5.5 cents per mile for all miles driven by the employee. However, you cannot value at 5.5 cents per mile fuel you provide for miles driven outside the United States (including its possessions and territories}, Canada, and Mexico. If you reimburse an employee for the cost of fuel, or have it charged to you, you generally value the fuel at the amount you reimburse, or the amount charged to you if it was bought at arm's length. If you have 20 or more automobiles, see Regulations section 1.61-21(d)(3)(ii)(D). If you provide any service other than maintenance and insurance for an automobile, you must add the FMV of that service to the annual lease value of the automobile to figure the value of the benefit. 4-year lease term. The annual lease values in the table are based on a 4-year lease term. These values will gener- ally stay the same for the period that begins with the first date you use this rule for the automobile and ends on December 31 of the fourth full calendar year following that date. Figure the annual lease value for each later 4-year period by determining the FMV of the automobile on Janu- ary 1 of the first year of the later 4-year period and select- ingthe amount in column (2) of the table that corresponds to the appropriate dollar range in column (1 ). Using fhe special accounting rule. If you use the special accounting rule for fringe benefits discussed in section 4, you can f'sgure the annual lease value for each later 4-year period at the beginning of the special account- ing period that starts immediately before the January 1 date described in the previous paragraph. For example, assume that you use the special account- ing rule and that, beginning on November 1, 2007, the special accounting period is November 1 to October 31. You elected to use the lease value rule as of January 1, 2008. You can refigure the annual lease value on Novem- ber 1, 2011, rather than on January 1, 2012. Transferring an automobile from one employee to an- other. Unless the primary purpose of the transfer is to reduce federal taxes, you can refigure the annual lease value based on the FMV of the automobile on January 1 of the calendar year of transfer. However, if you use the special accounting rule for fringe benefits discussed in section 4, you can refigure the annual (ease value (based on the FMV of the automobile) at the beginning of the special accounting period in which the transfer occurs. Prorated Annual Lease Value If you provide an automobile to an employee fora continu- ous period of 30 or more days but less than an entire calendar year, you can prorate the annual lease value. Figure the prorated annual lease value by multiplying the annual lease value by a fraction, using the number of days of availability as the numerator and 365 as the denomina- tor. If you provide an automobile continuously for at least 30 days, but the period covers 2 calendar years (or 2 special accounting periods if you are using the special accounting rule for fringe benefits discussed in section 4), you can use the prorated annual lease value or the daily lease value. If you have 20 or more automobiles, see Regulations section 1.61-21(d)(6). If an automobile is unavailable to the employee because of his or her personal reasons (for example, if the em- ployee is on vacation), you cannot take into account the periods of unavailability when you use a prorated annual lease value. You cannot use a prorated annual tease value if the reduction of federal taxis the main reason the automobile is unavailable. Daily Lease Value If you provide an automobile to an employee fora continu- ous period of less than 30 days, use the daily lease value to figure its value. Figure the daily lease value by multiply- ing 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. Unsafe Conditions Commuting Rule Under this rule, the value of commuting transportation you provide to a qualified employee solely because of unsafe conditions is $1.50 for aone-way commute (that is, from home to work or from work to home). This amount must be included in the employee's wages or reimbursed by the employee. You can use the unsafe conditions commuting rule for qualified employees if all of the following requirements are met. • The employee would ordinarily walk or use public transportation for commuting. • You have a written policy under avhich you do not provide the transportation for personal purposes other than commuting because of unsafe conditions. • The employee does not use the transportation for persona! purposes other than commuting because of unsafe conditions. These requirements must be met on a trip-by-trip basis. Publication 15-B (2008) Page 23