The IRS has announced the maximum fair market value (FMV) amounts that designate the proper valuation rule for employers calculating fringe benefit income from employer-provided automobiles, trucks, and vans first made available for personal use in 2017. Taxpayers with employer-provided vehicles within the designated FMV amounts may apply the vehicle cents-per-mile rule or fleet average valuation rule, as and when appropriate. Notice 2017-3 provides the current values.
Cents-per-mile. The maximum 2017 FMV amounts for use of the cents-per-mile valuation rule are $15,900 for a passenger automobile (unchanged from 2016) and $17,800 (up from $17,700 for 2016) for a truck or van, including passenger automobiles such as minivans and sport utility vehicles, which are built on a truck chassis.
Fleet-average. The maximum FMV amounts for use of the fleet-average valuation rule in 2017 are $21,100 for a passenger automobile (down from $21,200 for 2016) and $23,300 for a truck or van (up from $23,100 for 2016).
The notice outlining the current values applies to employer-provided vehicles first made available to employees for personal use in calendar year 2017.